Axie Infinity continues to grow steadily, alarmed the Philippine financial authorities, convinced that profits from cryptocurrency games based on the play-to-earn principle would be taxed accordingly.
Antonette Tionko, the Philippines’ Deputy Minister of Finance, shared this viewpoint. According to her, the tax for the game should be paid not only by the Axie Infinity creators but also by the gamers themselves, who profit from virtual activity on the network. Given that Axie Infinity has been a reliable source of income for many individuals, driving some to quit their day jobs, the news may come as a shock.
Tionko claims that the Philippine SEC, in collaboration with the country’s Central Bank, is debating whether AXS tokens and its virtual SLP coins are assets or securities. The Deputy Minister also clarified that, regardless of Sky Mavis’s registration (Vietnam), which created Axie Infinity, the company agrees to pay taxes in the Philippines on any income derived from domestic sources. Tionko insisted that because digital currency is a taxable asset in the Philippines, its earnings must be reported to the financial department.
According to the Philippine Securities and Exchange Commission, Sky Mavis is not licensed to sell securities in the Philippines.
Against this backdrop, the SLP rate on CoinMarketCap began to fall noticeably, reaching the current level of $0.1398, having lost 5.13 percent in the previous day. Simultaneously, the AXS token rate fell 4.01 percent on the day, closing at $71.91 on the Huobi cryptocurrency exchange.
Axie Infinity now has over 500,000 daily active users, with over 60% of them being Filipinos. On the other hand, players can only wait and hope that the local financial regulator’s possible destructive actions do not result in a further drop in the rates of both AXS tokens and the in-game currency SLP.