Philippine government to oblige Axie Infinity players to pay income tax
Axie Infinity continues to grow firmly, frightening the scale of the Philippine financial authorities, convinced that the profit from cryptocurrency games based on the play-to-earn principle shall be taxed accordingly.
This opinion was expressed by the Deputy Minister of Finance of the Philippines, Antonette Tionko. In her opinion, the tax for the game must be paid not only by the team of the creators of Axie Infinity but by the gamers themselves too, who receive revenue through virtual activity on the network. Considering that for numerous citizens, Axie Infinity has indeed become a stable income opportunity, prompting even to quit their main job, the news could be shocking.
Tionko claims that the Philippine SEC, together with the country's Central Bank, is actively discussing whether AXS tokens and its virtual SLP coins are assets, or securities, or not. The Deputy Minister also clarified that notwithstanding the place of Sky Mavis registration (Vietnam), which created Axie Infinity, it undertakes to pay taxes in the Philippines for any income received from local sources. Tionko insisted that digital currency is a taxable asset in the Philippines, so earnings from it are in any case classified as income that citizens must report to the financial department. The Philippine SEC, in turn, confirmed that Sky Mavis is not licensed to sell securities in the country. This was reported by the local newspaper Manila Bulletin.
Against the background of this news, the SLP rate on CoinMarketCap began to drop noticeably, reaching the current level of $0.1398, having lost 5.13% over the past day. At the same time, the AXS token rate fell 4.01% on the day, fixing at $71.91 on the Huobi cryptocurrency exchange.
Today Axie Infinity has over 500,000 daily active users, over 60% of whom are Philippine citizens. Players, on the other hand, can only be patient and hope that the possible destructive actions of the local financial regulator will not contribute to a further drop in the rates of both AXS tokens and the in-game currency SLP.
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