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Players of the popular blockchain game Axie Infinity might soon have to pay taxes for every earning derived from the platform.

The Department of Finance (DOF) said that income from the game and similar online gaming platforms are subject to income tax as per the law.

“Whoever earns currency from it, it's income you should report it,” said Finance Undersecretary Antonette Tionko.

Axie Infinity players can earn cryptocurrency and non-fungible tokens (NFTs) by growing fantasy creatures dubbed as “axies.”

Players cannot monetize the NFTs earned from the game but can trade and sell pet axies online for thousands of pesos.

“Cryptocurrency is an asset, so it's already taxable in the Philippines. What kind of tax applies? Certainly, the gains are subject to income tax,” Tionko told the media.

And while the nature of the asset is still up for the Securities and Exchange Commission (SEC) and Bangko Sentral ng Pilipinas (BSP) to decide, the fact that it generates monetary returns make it taxable.

Axie Infinity was created by the NFT-based online video game developer Sky Mavis from Vietnam.

The game jumped in popularity among Filipinos during the pandemic as people looked for ways to keep themselves entertained and, as a bonus, earn money while playing the game.

In related news, the SEC also mentioned that Sky Mavis is not registered as a corporation and does not have a license to sell or trade securities in the Philippines.

What do you think about this news, mga Kapuso? How do you think this would affect the game's growing followers?

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You might want to read how NFTs are changing the way we purchase valuables and collectibles.