Business

South Africa’s crypto companies are being forced to migrate due to a lack of regulation

Published

4 years ago

June 29, 2021

The biggest cryptocurrency fraud that took place in 2020 was a rude awakening for South Africa’s regulator and not everyone is waiting to see how it all plays out. As major financial hubs such as Singapore rewrite laws and regulations to entice crypto firms, and the United Kingdom government faces calls to start embracing virtual currencies, South Africa’s rapidly growing transactions say they are being forced to relocate their headquarters refers to speculation. About potential state regulation.

A lack of monitoring and restrictions on marketing to potential consumers are to blame for the dissatisfaction. Revix, a Cape-Town-based company that specializes in currency bundles, is relocating its headquarters to the United Kingdom and establishing a second site in Germany to support its expansion. Luno is Africa’s largest digital currency platform, with offices in London and Singapore.

In an interview, Sean Sanders who is a Revix Chief Executive Officer noted that South African regulators have been very sluggish in regards to regulation in the industry, and that leads to firms going overseas. In an unregulated environment, a consumer is entitled to be skeptical of their platform. With Elon Musks’ investing $1.5 billion and billionaire hedge-fund managers endorsing the currency, digital currencies are becoming increasingly popular on a daily basis. Bitcoin reached a high of more than $58,000 last month before reversing some of its gains, establishing itself as a hedge against inflation risk just as concerns about price pressures grow.

The recent year has been very important and challenging for the crypto-industry and the friendly regulatory framework in South Africa created a good environment for the companies to operate in the country. However, the lighter regulations resulted in troubles for not only brokerage companies that provide people with service, but for the crypto betting companies in South Africa who are now concerned about their activities as well. However, in a watershed moment for the sector, a suspected Ponzi scam in South Africa may have led investors to lose up to $1.2 billion in the world’s most renowned cryptocurrency.

Scam of the Year

Mirror Trading Holdings was put into contractionary territory and blockchain experts have since called it the world’s greatest crypto crime of the year. The company is said to have amassed over 23,000 bitcoin from investors, and its CEO is said to have gone to Brazil. Earle Loxton, CEO of Digital Currency Index, a company he founded with the help of former FirstRand Ltd. CEO Michael Jordaan stated that South Africa has a terrible history of pyramid and Ponzi scams, and crypto was the natural new structure for this. Regulation is welcomed by honest operations because it allows their clients to invest with trust, particularly at the organizational level.

South Africa may frustrate its entrepreneurs, but it is viewed as a forerunner in the industry in comparison to the rest of the continent since authorities and businesses are collaborating on suggestions. Plans to regulate the industry in Nigeria have been put on hold until operators create a bank account in the West African country. According to Brandon Topham, head of compliance at the Finance Sector in South Africa, the goal for South African authorities is to improve consumer rights rather than corporate security. In the next two months, he expects more offers.

Regulatory momentum

South Africa’s main banks have all endorsed regulatory attempts to establish a framework for crypto belongings, but their approaches to sector players are currently divided. Standard Bank Group Ltd has not prohibited crypto-asset businesses from all of the operations while FirstRnad’s first national bank has no financial connections with digital forex or dealers, according to emailed responses.

According to Sanders, South Africa’s crypto businesses find it difficult to remote on Facebook and Twitter since they are unregulated. As a result, their growth possibilities are hampered. The claims that the lack of policy has harmed South Africa’s revenue collection function, since relocating head offices necessitates paying tax in many nations.

According to Luno CEO Marius Reitz, the lack of a legislative framework had made it impossible for crypto platforms to maintain bank accounts. As a result, buyers will find it extremely difficult to purchase Bitcoin using their local fiat currency. There are indications that things are moving to the correct path. The regulator has issued draft regulations that would allow crypto assets to be classified as financial products. However, Sanders warns that doing so risks overlooking crypto’s novelty appeal.

South Africa appears to be going the other way as some of the more advanced market pioneers and innovators in this space. It appears that authorities are being laid by applying hundred-year-old securities laws to the innovative bitcoin asset class.

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

12 hours ago

December 5, 2025

The Tide

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.

The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.

According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.

This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.

Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.

“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.

“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.

With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.

The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.

Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

13 hours ago

December 5, 2025

The Tide

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

15 hours ago

December 5, 2025

The Tide

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.

Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).

Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “

Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade

Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.

He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.

Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.

“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.

Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.

He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.

Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.

He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.

Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.

Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.

John Bibor