A guide explaining the difference between an SDA & FIA
You can only generate returns from cryptocurrency arbitrage in South Africa within the threshold of your capital control allowances. These include your Single Discretionary Allowance of ZAR1million and your Foreign Investment Allowance of an additional ZAR10million.
These allowances, set by the SARB (South African Reserve Bank), have been put in place to limit the amount of ZAR you can send abroad per calendar year (1Jan-31Dec). This is to protect the Rand from exchange rate volatility and depreciation.
The ZAR1million SDA is yours to use at your own discretion and thus does not require any clearance from government whatsoever.
The additional ZAR10million FIA can only be accessed with a Tax Clearance Certificate (TCC) from SARS so that the SARB is current with why exactly you are moving Rands out of the country. OVEX tax practitioners can facilitate the process of applying for TCCs from SARS.