SARS does not allow cryptocurrency traders to walk away so easily just because it does not consider Bitcoin or other digital currencies to be legal tender. If you operate in South Africa, you are expected to pay tax. The regulation of cryptocurrencies is still a topic of debate in South Africa, but when it comes to taxes, it is not clear. SARS requires disclosure of cryptocurrency assets by taxpayers. If a taxpayer is caught for failing to disclose their cryptocurrency gains through SARS or for refusing or lying when asked as part of this audit to explain their cryptocurrency involvement, then they are equally liable under other tax laws. However, SARS poses some problems when tracking cryptocurrencies. Specifically, these cryptocurrency transactions are nowhere to be found. Although SARS can see a Bitcoin transaction on the public ledger, it cannot link it to a specific person. This is considered a major advantage and one of the underlying goals of this decentralized system. SARS' response to questions about how they plan to track transactions is also vague. They simply say that "in terms of legislation, SARS has a wide range of collection powers under the Income Tax Law." Tax firm Tax Consulting South Africa explains that so far the only explanation given for SARS is that cryptocurrencies will be taxed under capital gains tax rules. However, in its 2018 cryptocurrency tax FAQ, SARS identified that this is only for long-term investments, while small daily transactions should be considered income taxes.