It was the late noughties that saw the most prominent emergence of digital tools, which in turn paved the way for a whole new generation of investment companies in the form of online trading platforms.
Since then, spurred on by rapid innovation, emerging inventions like cryptocurrency and the speed of its mainstream adoption have put online trading into overdrive. Regulators have had their work cut out for them in trying to oversee these new markets and in South Africa, the related legislation is slowly but surely taking shape.
The primary regulatory body that oversees financial markets in South Africa is the Financial Sector Conduct Authority FSCA. The past few years have seen the FSCA bring in several important reforms to bring a higher level of security and transparency to South Africas financial sector. Among these changes have been the introduction of stricter compliance requirements for online trading platforms and the traders that use them.
Tax notes for online traders
Online traders need to be aware that just as investors in traditional financial instruments need to declare their capital gains to the South African Revenue Services, they too have to comply with the relevant tax legislations. Explaining the implications of capital gains tax for investors is Roger Eskinazi, Managing Partner at Tickmill, who says that any profits made from investment activities whether off- or online, need to be declared and are taxed accordingly.
