Axie Infinity players in the Philippines have to deal with income tax to be imposed by the country’s Finance Department soon.
The introduction of the tax is not only limited to any play-to-earn games such as Axie Infinity but also involves blockchain-based gaming firms.
However, lawmakers have yet to classify whether the native tokens Smooth Love Potion (SLP) and Axie Infinity Shards (AXS) are considered securities or currencies.
Throughout the COVID-19 pandemic, play-to-earn concept games have proliferated in the crypto market. There are also a handful who make Axie Infinity games part of the job with their profits far higher than local salaries.
With its insane popularity, AXS saw a jump of around 5,000% for 2021. While earlier this month, Axie Infinity had recorded token sales with the highest volume, $ 1 billion making it the most valuable NFT project in the world.
One thing that is not pleasant for the Finance Department is that the company that set up Axie Infinity, Sky Mavis is apparently not registered with the Philippine Bureau of Revenue.
The news clearly had a negative impact on the price of AXS and SLP. The AXS saw a nearly 10% decline yesterday local time to a daily low of $ 67.11 and the SLP a decline over 10% to $ 0.13.
When writing the AXS traded at $ 72.24, down nearly 5% in 24 hours, while the SLP posted a value of $ 0.13, down over 10%.
