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Regulations around cryptocurrency arbitrage in South Africa

Arbitrage is a great way to make money quickly by leveraging the unique advantages that cryptocurrencies provide – and OVEX customers are making millions of rand through this effective investment method.

Cryptocurrency arbitrage involves leveraging the differences in the price of popular coins like Bitcoin in different markets.

For example: over the past four years, South African Bitcoin markets have traded at an average premium of 4.6% compared to US Bitcoin markets.

By purchasing your Bitcoin in lower-priced markets and selling it in higher-priced markets, you can make a quick and substantial profit.

However, it is important that you understand the regulations you must abide by if you plan on engaging in cryptocurrency arbitrage.

Single Discretionary Allowance

Your Single Discretionary Allowance (SDA) allows you to transfer up to R1 million offshore per calendar year without requiring a Foreign Tax Clearance Certificate.

Any South African over the age of 18 can take advantage of this allowance, which can be used for a variety of actions:

  • Gifts and loans to non-South Africans
  • Donations to missionaries
  • Wedding expenses
  • Maintenance and alimony payments
  • Debit or credit card use when in other countries
  • Travel allowance
  • Study allowance
  • Foreign capital allowance
  • Arbitrage Service

It is the last of these uses that applies to cryptocurrency arbitrage.

It is worth noting that if you plan on using money for any of the other listed reasons, this will also come out of your R1 million SDA and should be budgeted for accordingly.

Foreign Investment Allowance

Your Foreign Investment Allowance (FIA) enables you to invest a further R10 million in foreign investments.

You will need to apply for your Foreign Tax Clearance Certificate (FTCC) from SARS, which will be valid for 12 months.

In total, your SDA and FIA mean you can invest with up to R11 million in foreign investments – which is required to buy or sell cryptocurrency in foreign markets.

Invest with OVEX

OVEX is the best place for South Africans to engage in cryptocurrency arbitrage.

It offers an intuitive platform, instant trading, and an extremely low 1% fee – so you are guaranteed no trading losses.

Click here to learn more about Bitcoin arbitrage from OVEX.

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Regulations around cryptocurrency arbitrage in South Africa