Global Crypto Regulation Tightens From Taxes to Political Ethics

Governments on two continents are tightening oversight of the crypto market. South Africa's revenue service is drafting rules to treat digital assets as taxable property, according to a government notice. The framework would require exchanges to report transactions above a certain threshold and impose capital-gains treatment on crypto trades. In the United States, a bipartisan group of lawmakers introduced a bill that would ban members of Congress from owning or trading digital assets, citing conflict-of-interest risks.

South Africa's move follows years of ambiguity. The tax authority previously issued informal guidance classifying crypto as intangible assets. Enforcement was uneven. The new rules, expected to take effect in the next fiscal year, would give the revenue service direct access to exchange data. For platforms operating in the country, compliance costs will rise. Clear tax treatment removes a layer of uncertainty that has kept some institutional investors on the sidelines, several local fund managers told Bloomberg. They said pension funds and insurers could allocate a small portion of portfolios to digital assets under the new framework.

The U.S. ethics bill targets a different kind of friction. Lawmakers from both parties have faced scrutiny over crypto investments that overlapped with their committee work. The proposed legislation would require divestment within 90 days and ban future holdings. It also extends to senior executive-branch officials, including the president. The bill's sponsors said the measure is needed to restore public trust after a series of scandals involving members who promoted tokens while shaping crypto policy. The legislation faces an uncertain path in a divided Congress. Its introduction has already changed the conversation on Capitol Hill.