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Blockchain Technology is Providing Financial Solution To African SMEs

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The blockchain technology came into the  light in 2016 in Africa. It has proven so far to be a great deal of help for the African continent. Now, small-and medium-business can easily get loans to run their businesses from crypto and blockchain companies enthusiastic about growing the space. Previously, SMEs in East Africa had found it difficult to acquire loans from the bank as they were wary of lending money to these small and medium enterprises because of the risk involved. However, the involvement of the blockchain technology brought a change where each of the SMEs can build their own reputation.

The blockchain technology makes it easy for lending companies to monitor and businesses that can keep healthy business practices and also helps in tracking records and transactions. The  blockchain is immutable and keeps a digital document of every transaction,therefore transactional histories and information that allows financial firms to broaden their reach and expand to other regions are accessible on the technology.

SME’s are not the only ones benefiting from the blockchain technology financially as farmers across the continent are getting financial inclusion and services. CEO of 4G Capital, Nairobi-based loan provider, Wayne Hennessy-Barrett says, “If a small-shop owner can take 10 $200 loans over the course of a year and there are 3.25 million small shop owners and 10 times that number of traders, you’re talking about a lot of people who need to buy inventory and sell it and don’t have access to a financial product designed around their needs.”
Some persons have become beneficials of the technology and  Janeffer Wacheke is one of them. She had been able to get loans from a blockchain based company, it has helped in the growth of her business. She says, “My prayers have been answered. In business, you need to be fast. The more you pay, the more you get bigger loans, and the more you can sell. It has really helped me.” She was able to gain access to loans through a blockchain-based mobile app developed by International Business Machines Corp. For East African country, Kenya,Microloans account for $6.5 million of a $20 billion informal economy sector of the country.

 

 

What do you think about more women getting into the African blockchain space? Share your opinion with us in the comment section below.
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South Africa Targets Crypto Traders Evading Tax

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South Africa is not taking its tax regulations on cryptocurrency with linency. The country’s regulators are working towards improving ways to track crypto traders and their transactions. The South African Revenue Service is working determine if crypto traders are paying taxes. The SARS commissioner revealed that the commission is exploring ways to identify those evading tax as well as those profiting from it.

Mark Kingon, the acting Commissioner of SARS explained that identification of the crypto trader is one of the most critical aspects. He says, “The key thing is identifying people who are trading because it’s easy to say cryptocurrency gains must be deductible, but there are also those who lose. That’s why it’s important to identify the trader.” Since most digital asset trade utilise credit cards it isn’t that easy but once a trader that isn’t complying to the rules is discovered, SARS will launch an investigation into it.

Traders are expected to include their gains and losses from trading crypto in their taxable income when they report their tax returns. This is because the agency had determined that cryptocurrency related transactions will be subjected to the regular tax laws.

Earlier in April, SARS had stated, “The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued. Failure to do so could result in interest and penalties.” The SARS had revealed that cryptocurrencies would not be charged in terms of Value-Added Tax (VAT), since they are treated as an exempt financial service. Also the issuance, collection, selling, buying, acquisition or transfer of ownership of cryptocurrencies would not be covered with VAT.

While cryptocurrency is growing in South Africa, we cannot help but wonder how far this tax regulation will go in crypto currency in Africa.

 



 

What do you think about crypto tax in South Africa? Share your opinion with us in the comment section below.
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Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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World’s First Blockchain Based Bond ready for Launch.

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The World Bank is collaborating with the Commonwealth Bank of Australia (CBA) to launch the first blockchain based global bond. The initiative is already catching the interest of investors in the new debt instrument. Applying the blockchain will help reduce a lot of processes between intermediaries and agents in the debt capital market. It can also improve operations and regulations.
The World Bank had revealed that about $50-60 billion is issued annually in bonds just for sustainable development. World Bank treasurer, Arunma Oteh explained: “Since our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with leveraging capital markets for development.
“Today, we believe that emerging technologies, equally offer transformative, yet prudent possibilities for us to continue to innovate, respond to investor needs and strengthen markets.
“We are therefore delighted that after working with our information technology colleagues and the Commonwealth Bank of Australia over several months, that we are now in a position to launch our first blockchain bond transaction. CBA’s commitment and Microsoft’s wealth of experience have been instrumental to achieving this historic milestone.”

The platform which is built by the CBA Blockchain Centre of Excellence. The CBA team has been dedicated to putting out the bond-i platform and has acted as a lead manager for a number of IBRD bond issuances in the Australian and New Zealand capital markets since 2009. The teams is keeping its focus on applying the blockchain to capital markets.

 

What do you think about blockchain based bond? Share your opinion with us in the comment section below.
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Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Marvel and Crypto Based Group Tussle Over the Wakanda Trademark

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Marvel is the latest company filing a lawsuit in a bid to protect the name of its characters. Marvel filed for an extension with the U.S. Patent and Trademark Office while it decides whether or not to oppose the trademark submissions of Wakanda Wine Fest and Wacoinda. The application was filed by Linda K. McLeod of Kelly IP, a legal team for Marvel Characters.

Wacoinda is actually a facebook group focused on black technology and economic centred around black wealth and influence as well as cryptocurrency and financial education. Wacoinda is named after the fictitious Marvel comic Book nation, Wakanda.


The Wacoinda group tried to register ‘Wacoinda’ as a trademark that offers  ‘Education services such as live and online cryptocurrency classes, conduct cryptocurrency programs and provide cryptocurrency educational speakers.

Wacoinda is co-founded by Lamar Wilson and the application for the trademark from a Kentucky company called Wilsondom. However Marvel had an extension of time to oppose the trademark application made by Wacoinda although it is not sure whether it will be granted or not.

 

Wacoinda is not the only startup trying to create a hype by using a famous name. The name Wakanda had earlier being linked to to the city famous rapper Akon proposed to launch. He equally launched his own digital coin and has plans of creating a crypto city in Africa that would be similar to Wakanda, the fictitious city in ‘Black Panther.’ However, we will know if Wacoinda can keep its name or not by November 14th, 2018.

 

 

What do you think about the trademark saga? Share your opinion with us in the comment section below.
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Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

 

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Draft Cryptocurrency Law Released in South Africa

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Earlier in April, the South African Revenue Service (SARS) announced its plans to tax cryptocurrencies. The SARS just released a draft cryptocurrency tax legislation to define the framework of digital currency taxation in the country.
SARS aims to place a tax on incomes generated from crypto trading and operations.

Since April 2018, the tax agency had laid out plans to tax cryptocurrency income. The SARS confirmed by press release in April stating,

“In South Africa, the word “currency” is not defined in the Income Tax Act (the Act). Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange. As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature.”

However, under the draft taxation legislation, cryptocurrencies will be classified as intangible assets subject to income tax. South Africans may be mandated by the Law to declare every income accrued from cryptocurrency if this law is adopted.

The draft equally added that cryptocurrency transactions are excluded from value-added tax (VAT). This is because such transactions are viewed as separate financial services transactions by the SAR. So, if you sell, purchase, transfer ownership, issue or hold cryptocurrency there will be no VAT to be paid.

Despite the looming presence of regulations and scams, the S.A cryptocurrency industry continues to thrive. A recent survey even revealed that about 38 per cent of South Africans expressed their regrets in not investing in cryptocurrencies earlier.

 

What do you think about the taxation law? Share your opinion with us in the comment section below.
Image credit: pixabay,

Disclaimer:
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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