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 from a 3rd party other than your RSA married spouse or a South African bank.
- Complete the registration process with us which entails:
- Completing our registration form
- Submitting KYC
- Passing AML
- Signing our mandates
- Currency Hub reserves the right to refuse our services to anyone at our discretion
Related Articles
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 ...
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 ...
Which cryptos or financial instruments are traded?
We have the flexibility to utilise stablecoins and cryptocurrencies based on the premium they offer when we make trading decisions. In the past, we have typically preferred stablecoins due to their higher liquidity and lower risk. However, there are ...
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 ...
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 ...