What is cryptocurrency arbitrage?

What is cryptocurrency arbitrage?

Arbitrage is a process that involves buying and selling securities, currency, or commodities in different markets simultaneously to profit from differences in prices for the same asset. These price differences occur due to changes in supply and demand, which can be influenced by factors like access to information, regulations, and capital restrictions.

We take advantage of crypto-arbitrage opportunities by exploiting the price fluctuations of Bitcoin in South Africa, where it tends to be more expensive compared to other regions due to exchange control regulations.

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    • Is cryptocurrency arbitrage legal?

      Yes. South African Reserve Bank (SARB) have acknowledged and approved our process. This along with our legal opinion on the Currency and Exchanges Act, and with the support of our counterparties such as Capitec, means we are able to engage in legal ...

    • What are the risks associated with crypto arbitrage trading?

      The counterparty risk we face primarily lies in trusting that we have chosen the best service providers across the entire ecosystem. We have mitigated this risk by having an FX intermediary within our organization and holding the FSCA Cat II ...

    • What is required in order to do the crypto arbitrage?

      To do the crypto arbitrage, You will need to: Have a South African ID card or book Have a South African tax number Be tax compliant in South Africa Have a minimum of R250,000 for your trading capital. These funds must be your own and cannot be loaned ...

    • Will the regulation of cryptos impact the premium?

      As of 1 June 2023, cryptos are regulated by the FSCA. Anyone doing arbitrage must be an authorized FSP with a “Cat II” FSCA license to trade on a discretionary basis and execute FX and arbitrage simultaneously. Regulation will reduce the number of ...

    • Why does the OTC premium appear to be lower than the on-exchange premium?

      The premium advertised by many other arbitrage services is based on-exchange prices and is misleading. That figure is calculated by taking the best possible prices on exchange at any given time and is often unattainable without taking on additional ...