Regulators, governments and tax men have been deconcentrated on how to track the cryptocurrency market expanding. He has seen a large gray area appear on the market in which incidents are usually treated as they come.

To this end, the South African Revenue Service, the country's tax agency, seeks high-tech assistance

This attempt by the Revenue Service of South Africa (SARS) could potentially open a Pandora's box as the right to privacy is deeply embedded in Bitcoins transparent

How it works now

It has been reported that only 802 people paid taxes on their Bitcoin earnings in the United States in September that the IRS had little choice but to ask for people to be honest in their tax returns

This extends to most countries as they exist, as there is still no precedent for forcing people to disclose their transactions

and other taxes In other countries, with information on investment nts of their customers for verification purposes, but in a cryptographic environment, this information is missing

Difficult battle

This leaves the revenue service in a difficult situation it becomes more and more tight as more and more people enter the cryptomarket.

Dr. Randall Carolissen, director of the SARS group for research, admits that they are looking for options to track Bitcoin transactions.

"As you can imagine, it's very difficult – Blockchain technology – without revealing too much – we're talking to some of the biggest tech companies in the world that are similar work for Canada and the United Kingdom and we hope to get this technology. "

Tightrope

The problem is that there is a right to privacy that is registered in Bitcoin, and it will be difficult for any institution to enter – Bitcoin transactions are transparent, but anonymous, but this anonymity is not not total.

No precedent yet being available on how to monitor transactions on this decentralized system, tax services and other regulators will have to find a solution.

The problem is that, because it's decentralized, pe can not come to their aid on the side of Bitcoin. Transactions are held openly on the Blockchain, but when it comes to linking these transactions to a person and enforcing taxation, it is still a very dark area for regulators.