PH NFT developers seek gov’t tax regulation

March 16, 2022 Philippines Blockchain

Filipino developers and players in the rapidly growing NFT (non-fungible tokens) agreed that the industry must be regulated, including taxation, as they noted unclear government regulations in the very new industry where the Philippines is seen becoming a global hub.

Leaders of Filipino-owned tech startup MetaDhana Studio, which developed and is marketing the Philippines first locally-developed NFT Rooster Wars, believe that taxation can be embedded in the game itself as they recognized the need for government regulation of the growing NFTs, a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio.

MetaDhana CEO Mikhail Jon Peñalosa said at the Kamuning Bakery forum, stressed that government has a hard time coming up with regulations on this very new area.

“People are already making full time income through NFT playing in gaming leagues,” he added. But, he pointed that, “Until now the regulations are not clear. Which are the taxable events, which are the taxable events? Which part of this is taxable or is it the conversion of the token to Philippine peso. Is it the actual gains oif tokens from gaming? We don’t know, not very clear.”

Penalosa said they are very much willing to work with the regulatory agencies. “We are very pleased to be working with the government,” he added.