Danny McCance 4 Dec 2017 04:41pm

South African company makes bitcoin equity deal

Nona Creative, a Cape Town-based technology business has just become one of the first companies in South Africa to complete equity deal in bitcoin

The company, which includes blockchain consulting as part of its service offering, bought out a major shareholder using the cryptocurrency.

“We firmly believe in Bitcoin and wanted to show just how effortless it is to conduct normal business transactions using cryptocurrency,” said Mike Scott, founder and CEO of Nona Creative.

He added that blockchain is the “next major technological revolution.”

The transaction comes at a key point for the cryptocurrency, as last week PwC Hong Kong became the first of the Big Four firms to accept payment for its advisory services in bitcoin.

Because of the status of regulation surrounding bitcoin, Nona Creative was given advice from law firm SchoemanLaw.

“It is no longer a question of whether such currencies, including Bitcoin, should be regulated or not, but rather who will be doing the regulating,” said Nicolene Schoeman-Louw, managing director at SchoemanLaw, in relation to the South African Reserve Bank’s regulatory experiments.

The firm also enlisted the help of Afzal Khan, tax partner at the association of African National Accountants, Auditors and other specialists, RAFT.

“The principles for taxation of ecommerce transactions and financial instruments are clear,” Khan said.

However, specific rules may be developed in future to clarify the duality of crypto financial instruments,” he added.

In an interview earlier today, John Mann, a member of the UK’s Treasury Select Committee said that he expected an inquiry into bitcoin next year, amid fears that the cryptocurrency is being mis-used by criminal enterprises.

The British government is currently negotiating amendments to the EU’s fourth anti-money laundering directive.