What is crypto arbitrage and how does it work?
Crypto arbitrage is buying and selling the same asset on different venues when the quoted prices differ. In South Africa that often means a local venue and an offshore venue — after fees, FX, and settlement risk.
Crypto arbitrage is a way of dealing with the same crypto asset on more than one venue when the quoted prices are not the same. One venue might show a higher rand price than another at the same moment. The strategy is to buy where the quote is lower and sell where the quote is higher. That sentence describes a mechanism. It does not describe a typical result, and it is not a recommendation.
Dooya offers this as a licensed financial service (FSP 53712), not as a do-it-yourself scanner. Software monitors local and international venues; the firm executes on behalf of clients who have been onboarded. See crypto arbitrage.
How the two-venue gap works
A simplified illustration: if Bitcoin were quoted at R500 000 on venue A and R505 000 on venue B, the R5 000 difference is the quoted gap before fees, forex conversion, transfer time, and the risk that prices move before both legs complete. That figure is an illustration only. It is not a typical or expected outcome, and it is not what any given client will receive.
Unlike a directional bet that the rand price of Bitcoin will rise or fall, arbitrage is aimed at the difference between venues. The difference can still disappear. Legs can complete at worse quotes than the ones on the screen when the cycle started. Banking, FX, and network delays are part of that risk. Crypto assets can also lose value; they are not legal tender.
Why South Africa is a distinct setting
South African individuals face exchange-control allowances (SDA and FIA) that limit how much may be sent offshore in a calendar year. Local demand and those limits are one reason a local venue's quote can differ from an international venue's quote for the same asset. That is a market-structure observation, not a promise that a gap will persist or that it can be captured after costs. The FAQ explains SDA (R2 000 000) and FIA (up to R10 000 000 with tax clearance).
Getting started with a licensed provider
Dooya's arbitrage service has a minimum trade amount of R100 000, a South African ID requirement, an age requirement of 18, proof of funds, and unused SDA or FIA capacity — all on the FAQ. Onboarding is a suitability and FICA process, not a downloadable trading terminal. Fees are on the fees page. The licence page sets out Category I and Category II crypto-asset authorisation.
Related FAQs
What is Crypto Arbitrage?
Crypto arbitrage involves purchasing and selling cryptocurrency at the same time across various markets to profit from price differences for the same asset.
Why do these price differences exist and will it be forever?
Price differences pop up because of supply and demand quirks in different markets. For us at Dooya, focusing on South Africa, it's largely tied to capital controls — rules set by the government that limit how much money can flow in and out of the country. In South Africa, these controls come in the form of yearly Foreign Exchange Allowances. These limits cap how much cash you can send overseas, which ramps up local demand for crypto assets like Bitcoin. At the same time, they choke the supply of crypto coming into South Africa. The result? Crypto often trades here at premiums above 2% compared to international markets.
The good news? As an individual in South Africa, you can use your Foreign Exchange Allowance to buy crypto abroad and cash in on this gap — something companies and other entities can't do. That's why this arbitrage opportunity has been around for over 5 years and counting.
Normally, arbitrage gaps close fast — think minutes — as markets sort themselves out. But in South Africa, these price differences are baked into the system because of those controls. They're not something the market can just 'fix' on its own. So, as long as these restrictions stick around, this crypto arbitrage edge is likely here to stay. Ready to make it work for you? We've got your back!
What is the minimum trade amount?
We allow a minimum trade amount of R100,000 to participate in crypto arbitrage.