On 15 September 2025, the South African Revenue Service (SARS) released the draft Crypto-Asset Reporting Framework (CARF) regulations for public comment, marking a significant step in aligning South Africa with the global push for transparency in crypto-asset transactions.
The deadline for public comment is 3 October 2025, giving stakeholders limited time to engage with the draft and prepare for its implications.
The Organisation for Economic Co-operation and Development (OECD) developed CARF to address the growing use of crypto-assets in cross-border transactions and prevent tax evasion.
“South Africa’s adoption of this framework signals its commitment to international standards in financial transparency and digital asset regulation,” asserts Wiehann Olivier, a Partner and FinTech & Digital Assets Lead at Forvis Mazars in South Africa.
“This development will reshape the operational, compliance, and strategic priorities of Crypto-Asset Service Providers (CASPs), while also ushering in a new era of accountability for taxpayers.”
CASPs: From Innovation to Regulation
The draft regulations place CASPs at the centre of the compliance framework. These entities, which include exchanges, brokers, and wallet providers, will be required to collect and report detailed information on crypto transactions, including acquisitions, disposals, transfers, and valuations.
“The scope is broad, covering not only traditional cryptocurrencies but also stablecoins and certain NFTs,” explains Olivier.
While CASPs already operate under Financial Intelligence Centre (FIC) obligations and FATF Travel Rule standards, CARF introduces additional tax-specific due diligence requirements. These include verifying tax residency and identifying reportable persons under the OECD framework.
“CASPs will need to ensure their systems can support both regulatory and tax reporting obligations in parallel. The reputational and financial risks of non-compliance are significant,” continues Olivier.
“SARS has made it clear that failure to meet reporting obligations will result in penalties and enforcement actions under the Tax Administration Act. CASPs that do not adapt may face market exclusion or consolidation.”
Taxpayers: No More Grey Areas
For taxpayers, the CARF regulations eliminate the ambiguity that has long surrounded crypto taxation.
“With SARS set to receive granular transaction-level data, under-declaration and omission will become increasingly risky,” warns Olivier.
“Taxpayers, especially those with significant crypto holdings, must now ensure that their records are accurate, complete, and defensible. This includes reconciling historical transactions, calculating gains, and understanding the tax implications of staking, lending, and other crypto activities.
The days of informal recordkeeping and selective disclosure are over. Crypto-assets must now be treated with the same level of diligence as traditional financial instruments.”
In cases where taxpayers have omitted crypto-related income from previous tax returns, SARS’ Voluntary Disclosure Programme (VDP) offers a structured and legally protected route to regularise their affairs.
“The VDP allows individuals and entities to disclose previously undeclared income voluntarily, potentially avoiding hefty penalties and criminal prosecution. Forvis Mazars encourages taxpayers who may be affected to consider this route before SARS begins enforcement based on CARF data,” explains Olivier.
A Cultural Shift in Tax Compliance
Beyond the technical requirements, CARF represents a cultural shift in how digital assets are perceived.
“Crypto is no longer a fringe asset class. It is now subject to the same scrutiny as traditional financial instruments,” asserts Olivier.
“This shift will influence investor behaviour, platform design, and product innovation. We expect to see increased demand for tax-efficient crypto investment structures, formalised reporting and better integration between crypto platforms and traditional financial institutions.”
A New Chapter in Crypto Governance
According to Olivier, the draft CARF regulations released by SARS are more than a compliance requirement.
“They are a catalyst for modernisation, transparency, and trust in the crypto ecosystem. For CASPs, taxpayers, and regulators, this is a defining moment. South Africa is stepping into the global spotlight on crypto governance. The question now is not whether stakeholders will comply, but how quickly and effectively they will adapt,” he concludes.
