 How to buy Bitcoin in South Africa 
2025-01-20
Category: None

Buying your first Bitcoin can be daunting, especially for South Africans who are new to crypto. You need to consider several factors and steps before making an investment. There are complex regulations, tax implications and security considerations before you get to the fun part -— owning Bitcoin BTCUSD.
If you’re looking to buy Bitcoin in South Africa but want clarity on the rules and how to go about it safely, then keep reading. This step-by-step guide simplifies all the technicalities to walk you through the process so you can confidently buy Bitcoin with ZAR. 
Let’s get started with how to invest in Bitcoin South Africa
Bitcoin regulations in South Africa
Bitcoin is legal in South Africa, and there is growing support for cryptocurrencies among individuals, businesses and the regulatory environment. It’s important to note that Bitcoin is not considered legal tender or money in South Africa. 
The South African Reserve Bank (SARB) views Bitcoin as a digital asset rather than a currency. This means the use and acceptance are not yet widespread in day-to-day life. Many South Africans still invest in Bitcoin by buying, selling and trading it on several platforms and exchanges. 
In fact, 18% of South African internet users under 64 years old hold cryptocurrencies. That’s the highest adoption rate across Africa. By the end of 2024, the South African government had issued 59 operating licenses for crypto businesses. 
The legal status and growing adoption rate show a favorable environment for Bitcoin. The government has also established a regulatory framework to better protect investors against fraudulent activities while still fostering growth and innovation in the sector. 
This regulation includes guidelines for “a digital representation of value,” making crypto a financial product subject to the Financial Advisory and Intermediary Services Act (FAIS). All crypto service providers must be granted permission by the FAIS to operate. 
Did you know? In 2024, South Africa emerged as a leading digital asset hub, driving growth for crypto with forward-thinking regulation and expanding the availability of crypto platforms. Regulation frameworks pave the way for other African nations to follow suit in how Bitcoin is regulated.
Tax implications for Bitcoin in South Africa
As for Bitcoin taxes in South Africa, the South African Revenue Service (SARS) classes it as an intangible asset. 
So, any profits you make from buying and selling Bitcoin are subject to capital gains tax or income tax. If you buy and sell crypto, you must declare your gains and losses on your tax return. 
The rate of tax you will pay is subject to your tax bracket, with the top capital gains rate currently sitting at 18%. Make sure to keep a detailed record of all purchases, sales and crypto-to-crypto trades. 
Did you know? South Africa had about 5.8 million crypto users by the end of 2024. This represents 9% of the country’s total population, with 77% of those owners in the middle-income bracket earning less than $24,000 a year. 
Do nomads pay tax on Bitcoin in South Africa?
Yes, nomads in South Africa are subject to tax on BTC gains under South African tax law. As SARS classifies cryptocurrencies as assets, not currency, profits from disposing of BTC are subject to either income tax or CGT, depending on the nature of the activity. 
If the taxpayer is deemed to be trading in BTC (i.e., frequent buying and selling with the primary intention of making a profit), the gains will be taxed as revenue under income tax. Conversely, if the BTC is held as a capital asset for longer-term investment, the gains will be subject to CGT.
So, even if you’re not officially a resident of South Africa, you could still owe taxes there if you spend a good chunk of time in the country or if the way you’re making money from Bitcoin is seen as being connected to South Africa. 
That’s why it’s essential to keep good records of all your Bitcoin transactions, including dates, how much you traded and the value at the time. Basically, everything! 
If you’re dealing with crypto while in South Africa, a tax adviser could save you a lot of headaches and make sure you’re doing everything by the book.
Choosing a Bitcoin wallet
Before you start Bitcoin trading in South Africa, you must understand how to safely store and transact with it. If you want to own Bitcoin, you’ll need to get a wallet. This is like your “crypto bank account,” where you can receive, hold and send your coins. 
There are several categories of wallets, the most popular being exchange, software, and hardware wallets. Here’s the difference, including several Bitcoin wallet options in South Africa:
Did you know? South Africa consistently ranks within the top 10 countries for online searches of Bitcoin and cryptocurrency on Google. 
Where to buy Bitcoin in South Africa
There are several crypto exchanges in South Africa that are regulated and allow you to buy Bitcoin. Before depositing any funds, research your choice thoroughly, ensuring the reputation and legitimacy of a platform. 
Here’s where you can buy BTC in SA:
Steps to buy Bitcoin in South Africa
Here’s how to buy Bitcoin in South Africa using the Luno exchange:
1. Create and verify your account:

2. Deposit South African Rand (ZAR):

3. Buy Bitcoin

4. Access Your Bitcoin

Risks of buying Bitcoin in South Africa
Buying Bitcoin in South Africa offers exciting opportunities but also comes with risks unique to the local economy. 
Let’s learn about what those challenges are:
The South African government’s proactive approach to regulation signals a commitment to fostering a safe and innovative environment for crypto. By staying informed about the evolving regulations, understanding the tax obligations and being aware of the inherent risks, you can confidently navigate the world of Bitcoin in South Africa.