Finance Undersecretary Antonette C. Tionko said earnings from online games such as Axie Infinity are subject to tax.

This new business model where real money can be earned by playing games centered on cryptocurrency-based assets has gained massive popularity worldwide amid the pandemic.

Axie Infinity, a Pokemon-inspired game created by Vietnamese developer Sky Mavis, is a big hit among global gamers, of which 40 percent are in the Philippines. Some gamers have even made a living playing this blockchain-based game in which players breed and trade digital pets called Axies for real money.

Tionko, however, admitted that the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas have yet to decide whether Axie is a security or a currency.

“But regardless of how it is characterized, it’s taxable, subject to income tax,” said Tionko, who heads the DOF’s Revenue Operations Group.

From only P250, the price of an “Axie” token has reportedly jumped to more than P30,000 each.

The post DOF: Axie Infinity, other play-to-earn games subject to tax first appeared on Bilyonaryo Business News.