The Philippines will tax earning of players from gaming platfrom Axie Infinity
Axie Infinity is registered in Vitenam, but that doesn’t stop financial authorities from targetting it
The news cause AXS and SLP prices to dip.
YEREVAN (CoinChapter.com) — On the backdrop of the rising popularity of online multiplayer video games that allow players to earn in cryptocurrencies, like the Axie Infinity, the Philipines has decided to tax players.
According to Finance Undersecretary Antonette C. Tiono, the country will levy taxes on earnings from these gaming platforms.
Axie Infinity trades under the ticker AXS. As the news spread, AXS fell over 7% on the charts.
The Philipines Department of Finance (DOP) and the Bureau of Internal Revenue (BIR) have singled out Axie Infinity as prime industry representatives.
Axie Infinity is an online adventure game developed by Sky Mavis, a Vietnamese gaming studio.
The blockchain-based game became popular in the Philippines, especially during the pandemic. The format of the game is such that it allows players to earn cryptocurrencies. They can then exchange and trade these cryptocurrencies for Philippine pesos.
The players earn crypto by purchasing three “Axies” or digital pets on the gaming platform, which they must breed and hatch offspring to increase their number. Players then deploy these characters to go and fight on the battlefield in the game. The platform rewards those players that complete these battles in the form of cryptocurrencies.
Although the developer of the game, Sky Mavis, is a non-resident foreign corporation and is based out of Vietnam, the Philipines still want to tax any income earned in the country. Sky Mavis is also not registered with the Bureau of Internal Revenue (BIR).
“It is not registered in the Philippines. That is one of the things that we hopefully capture once we have that system of registration for non-residents. It’s not in the Philippines, but certainly, whoever earns currency from it, you should report it,”
Although the country is all set to tax players who earn through the Axie platform, the status of AXS remains undecided.
The Securities Exchange Commission (SEC) of the Philipines and the country’s Central Bank (Bangko Sentral ng Pilipinas) have still not determined whether Axie is a currency or a security.
“Is it a security? Is it a currency? So those are the things that will help us define the rules on how it should be taxed. But regardless of how it is characterized, it’s taxable — subject to income tax.”
said Tionko, the head of DOF’s Revenue Operations Group.
As the country prepares to tax players, the price of SLP, the inhouse token of the Axie gaming network, has taken a hit.
Gamers started selling off their SLP, causing the token to crash by as much as 15%. When the markets closed, it was down over 7%.
A few months ago, SLP had caught investors’ and perhaps the authorities’ attention when it put a stellar performance by increasing over 900%. It had gone from $0.035 on April 26 to an impressive high of above $0.36 on May 2.
As time passes, we can expect more clarity coming from the Philipines on the future of SLP and Axie Infinity.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he currently works as a reporter at CoinChapter.
Contact: [email protected]
Minecraft, the popular game from Microsoft-owned Mojang Studios, has decided to ban Non-Fungible Tokens (NTFs) on its platform.
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.