Crypto, DeFi & Blockchain
OUR ATTORNEYS CAN ADVISE ON LOCAL AND INTERNATION REGULATION OF THE BLOCKCHAIN SPACE.
Talk to usDunsters is a leading South African firm in advising on crypto-issues
Blockchain is a developing industry worldwide, full of opportunity. We have helped clients start businesses which offer blockchain technology solutions both locally and abroad, assisting with development of products in both unregulated and regulated jurisdictions.
We can guide you through the legal process of forming your company and providing blockchain services in both South Africa and Europe. We have partners across the globe who are well-positioned to quickly and efficiently provide you with the necessary infrastructure for your business.
Naturally, we also assist with reviewing relevant contracts and drafting agreements which may be necessary for your business’ operation.
We guide both small and large businesses on the requirements of good corporate governance and provide clients with sound and practical advice to add value while ensuring compliance.
Contact us today for an introductory chat, and let’s see how we can help you.
Our Crypto, DeFi & Blockchain services include:
Cryptocurrency Products
We advise clients on the provision of cryptocurrency products in South Africa. Most crypto-assets were declared financial products in 2022 and will be subject to regulation by the Financial Sector Conduct Authority. We are closely attuned to developments with the FSCA and their regulation of crypto-assets and we can guide you on how to prepare your business for incoming regulation.
Where applicable to the specific product, we can advise of the risks of non-compliance with the Collective Investment Schemes Act, Financial Advisory and Intermediary Services, Financial Markets Act, Banks Act and the Conduct of Financial Institutions Bill.
International Advisory Services
Our team has consulted extensively on international blockchain products and services. We advise clients on prospects of successful licensing in Europe, where most jurisdictions do regulate dealing in crypto-assets, and can assist in preparing applications to relevant regulators.
We advise our clients on the legal regulatory landscape of various jurisdictions and connect them with our partners for service provision regarding company incorporation, director registration, financial licensing, custodial solutions and listing applications.
Blockchain Technology
Blockchain is a rapidly developing and unique platform, already disrupting many industries as it grows. We can guide our clients on how to adapt to this new landscape and provide cutting-edge legal advice on issues relating to legal compliance and risk management.
Private Equity & Crypto
We can advise on the most appropriate legal structures for crypto-asset investment vehicles and can guide our clients to the most suitable option depending on their needs.
Tax on Crypto-Assets
In consultation with tax practitioners, our team advises on taxation issues on crypto-assets in South Africa both for clients personally and for their businesses.
We can advise on best-practice for management of your crypto-assets from a tax law perspective and as relates to your estate. Where necessary, we may refer you to a knowledgeable tax practitioner to provide tax advice on a particular issue.
Common questions we’re often asked regarding Crypto, DeFi & Blockchain:
When do I need to take legal advice on crypto-assets?
Legal advice on crypto-assets is recommended when a client :
- Seeks to develop a crypto product;
- Seeks to sell crypto-products to the public;
- Has an estate of which a large proportion comprises crypto-products;
- Wishes to expand their business offering blockchain solutions abroad;
- Is being litigated against due to activities concerning crypto-assets.
Is cryptocurrency legal in South Africa?
Cryptocurrency is legal in South Africa, but it is not legal tender. This means that the regulator does not regard cryptocurrency as a payment form – as money. While parties can use cryptocurrency to transact, if they choose, it is generally treated as an asset for tax purposes.
Certain dealings in crypto-assets require operators to be licensed, however the specific requirements for these licenses are not all clear as the FSCA has yet to provide the necessary guidelines.
The Financial Sector Conduct Authority has indicated that regulation of crypto-assets in South Africa will be forthcoming by 2023, this provides challenges to businesses offering crypto-asset services who will need to fit into this regulatory framework when it arrives.
Estate planning and crypto-assets
There are risks associated with crypto-assets for individuals personally, especially on a person’s death where many crypto wallets may become inaccessible. Clients should seek legal advice when preparing their last will and testament on how to bequeath any crypto-assets they may own on their death.