Storms are gathering around hit cryptocurrency game Axie Infinity as regulators in its prime market, the Philippines, expressed their intention to tax its players as well as publisher.
Income from play-to-earn crypto games like Axie Infinity should be taxed, Manila Bulletin reported earlier on Monday, citing Undersecretary of Finance Antonette C. Tionko.
Tionko outlined that whether Axie tokens are assets or securities is being discussed by the country’s SEC [Securities & Exchange Commission] and central bank.
The undersecretary also outlined that while the game’s Vietnamese creator, Sky Mavis, isn’t registered within the Philippines, it must pay taxes in the country for any revenue created via native sources.
The SEC explained that the sport and its publisher aren’t registered within the Philippines, which Sky Mavis doesn’t have a license to sell securities, the Manila Bulletin outlined earlier yesterday.
Axie Infinity permits its players to earn passive income employing NFTs [Non-fungible Tokens].
Globally, it counts almost half 1,000,000 daily active users, and over 60% of them are from the Philippines, Leah Callon-Butler, director of consulting company Emfarsis, revealed within an official announcement earlier in July.
Concurrently, the worth of the Axie Infinity token, AXS, has increased dramatically, from around $5 USD at the end of July, to $75 USD at the time of reporting.