Hi everyone,

I have a question that nobody has been able to give me a clear cut answer to. I understand that normal trading of crypto assets (bitcoin) would attract income tax at your nominal tax rate against any profits, if you are buying and selling often. My question relates to arbitrage profits derived from bitcoin trading. The caveat is that in this case, the arbitrage is performed by a 3rd party financial institution, using one's SDA and AIT allowances from SARS. As an individual you are not buying / selling (trading) bitcoin in your personal capacity. You fund the 3rd party, they will buy and sell bitcoin between local and foreign crypto exchanges (hence the AITs from SARS), take a commission and return the original funding amount + profits to you. This cycle continues until all your AIT PINS have been used up for the year. As an individual, you cannot provide base cost analysis as you never actually trade / own bitcoin assets in your personal capacity. Am I thus correct in my assumption that any such profits should thus attract CGT, seeing that you basically start off with a funding amount in a forex account and ending up with a balance which includes any profits for the tax year?