A virtual currency is a unit of account that is digitally or electronically created and stored. A virtual currency allows users to purchase goods and services without using a government-backed currency, provided that the participants are willing to accept the currency as a form of payment. This unregulated, ‘open source’ currency is not controlled and there are no barriers preventing people from using it.
The National Treasury, the South African Reserve Bank, the Financial Services Board, the South African Revenue Service and the Financial Intelligence Centre has sent out a warning advising users to exercise extreme caution when participating in virtual currency transactions.
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