Crypto Transactions in Sudan Double Year-on-Year Amid Hyperinflation

Cryptocurrency usage in Sudan has surged over the past five years as individuals seek protection against hyperinflation, banking challenges, and remittance delays. Chain analytics data shows that crypto transactions related to Sudan more than doubled year-on-year in 2024-25, driven primarily by the trading of stablecoins between peers and offshore exchanges accessed through VPNs.

The Taxation Chamber of the Ministry of Finance in Sudan oversees income-related obligations, while the Central Bank of Sudan (CBOS) issues prudential circulars that indirectly influence crypto compliance. The Electronic Transactions Act 2007 provides a foundational electronic-commerce regulation, though it predates Bitcoin. The Income Tax Act 1986 includes crypto gains under miscellaneous income, and AML Circulars from 2019 to 2024 require banks and mobile-money operators to report suspicious crypto-linked transfers exceeding approximately SDG 4 million. Cryptocurrency is classified as intangible property, meaning profits are taxed under the income tax regime, with no specific capital gains code in place.

In Sudan, capital gains tax on crypto is not yet codified, with gains currently categorized under miscellaneous income. Income tax applies to profits from trading, mining or staking rewards, airdrops, forks, and tokens received as payment for services. Digital-asset exchanges are not subject to VAT unless they are involved in the payment of goods or services with crypto, in which case a standard VAT of 17% applies to the underlying sale. A draft withholding tax suggests a 2% tax on large crypto-to-fiat cash outs, while there is no specific wealth or inheritance tax on crypto at this point.

Individual miscellaneous income or capital gain is taxed at a fixed rate of 15% on net crypto profits. Corporate income tax on crypto-intensive corporations is 35%, equal to other profits. A proposed withholding tax of 2% at the source applies when annual cash-outs exceed USD 50,000. Exemptions include a de minimis exemption of gains less than SDG 100,000 per tax year and zero-rating for non-resident humanitarian organizations running blockchain pilots.

Purchasing crypto using fiat currency is a non-taxable acquisition event, while selling crypto to fiat currency is taxable. Crypto-to-crypto swaps are treated as two disposals, with the fair-market value in Sudanese pounds on the trade date reported. Mining or staking rewards are treated as ordinary income, with depreciation of mining equipment permitted over three years. Salary or vendor payments in crypto require conversion to SDG value on the payroll date and deduction of PAY. DeFi lending, yield farming, interest, or token compensation is considered income, with impermanent-loss reimbursement treated as gain or loss. NFT mints and sales are taxable income, with collectors having gains on resale.

Sudanese taxpayers must report crypto income on the annual Form F15 Miscellaneous and Investment Income and a Crypto Annexe (Schedule C-DX) with details of each transaction. Exchanges serving Sudanese residents must issue year-end statements, and taxpayers must keep records for seven years. The deadline to file is March 31 after the tax year, with a 5% surcharge per month for late filings, up to a maximum of 25%.

Cryptocurrency trading losses can offset other gains in the same year and be carried forward for three years. Direct costs of crypto operations, such as exchange fees and mining electricity expenses, are deductible against crypto income. However, personal-use hardware wallets and VPN subscriptions are not deductible. Registered crypto-broking companies can use a wider range of deductions according to the business Profit Tax Code. Wash sales do not count toward loss deduction.

The Taxation Chamber collaborates with CBOS and telecommunication operators to monitor wallet activity. Bank and mobile-money gatekeepers submit threshold reports, and foreign exchanges exchange user information under FATF treaties. Regional RegTech vendors provide blockchain analytics dashboards to identify large flows and the use of mixing services. Failure to report taxable crypto income can result in administrative penalties, account freezes, criminal prosecution, and travel bans. Voluntary disclosure within 90 days of discovery can reduce penalties and shield from criminal charges.

The FinTech Bill, to be debated in Q4 2025, establishes licensing levels for virtual-asset service providers and codifies the 2% cash-out tax. It also considers zero-rating bonafide remittance corridors and a regulatory sandbox for blockchain pilots in agriculture, traceability, and land registries. If introduced, the bill may bring clearer regulations and incentives for start-ups and diaspora investors.

Sudan's current system imposes crypto taxation through income taxes, with profits subject to a 15% miscellaneous income tax and businesses subject to a 35% corporate rate. A 2% withholding tax is in the pipeline, and careful record-keeping is required. Regulatory instruments, such as exchange reporting and on-chain analytics, are becoming more advanced, making voluntary compliance the most secure option. In cases of uncertainty, consulting a Sudan-certified tax adviser can help maximize deductions and prevent hefty fines.