[ElViajero]

> And by the way, this exact rule is the reason many South African startup founders incorporate in Delaware instead of locally, because it is extremely difficult to attract foreign investment if the investors know they will not be able to get the return on their investment (or share of the IP) out of the country again.

Except that in the USA you also need to declare transfers over $10,000 to the Internal Revenue Service (IRS). And this is done to find people trying to avoid paying taxes. It is the same for the European Union. And it is the same for any other country.

Quite often the answer to all this articles is "the world does not work as you think it works", crypto-currencies are not special, it is just that the bureaucracy of countries need to catch up.

[zinekeller]

> Except that in the USA you also need to declare transfers over $10,000 to the Internal Revenue Service (IRS). And this is done to find people trying to avoid paying taxes. It is the same for the European Union. And it is the same for any other country.

Re-read the article. Foreign investors literally cannot move their money* from South Africa to another country, period, if the law is followed strictly. It's not money laundering or tax issues, it's literally wealth portability.

* Technically, minus ~US$69,000.

[BTCarel]

This has nothing to do with tax avoidance and everything to do with an outdated exchange control rule that is fairly unique to South Africa.

[ineedasername]

In the USA it is at least merely a CRT report the bank has to file. It looks like in South Africa they're going to need permission first rather than simply providing the government with the ability to track capital movements.

[dash2]

Yes, but "declare to the IRS" is not as bad as "anything over $40 is banned".

[guest159835]

Exactly, even a smartphone is worth over $40. Personal apparel is usually not worth 10 grand.