Sky Mavis or Axie Infinity was “not registered” with SEC
Popular online play-to-earn game “Axie Infinity” or game developer Sky Mavis wasn’t registered as a corporation with the Securities and Exchange Commission (SEC) nor did it have a license to trade or sell securities in the Philippines.
The Securities and Exchange Commission informed Business Bulletin that the SEC has received numerous inquiries regarding “Axie Infinity” and other online play-to-earn platforms and schemes as this has been a topic of discussion within the PhiliFintech Innovation Office (PIO) and other operating departments.
With that, the Securities and Exchange Commission said that the SEC was currently investigating regulatory touch points and also studying its economic impact and risk exposure to Filipinos.
“Axie Infinity” was an adventure online play-to-earn game developed by Vietnamese studio Sky Mavis.
The said game was a blockchain game whose popularity exponentially rose in the Philippines amidst the pandemic, allowing players to earn in-game cryptocurrencies that could be exchanged and traded to Philippine pesos.
A statement from the Securities and Exchange Commission came after Finance Undersecretary Antonette C. Tionko admitted that the “characterization” regarding whether “Axie” was security or currency remained unresolved by the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP).
“Regardless of how it is characterized, it’s taxable, subject to income tax,” Tionko said.
According to Tionko, earnings from online play-to-earn games were subject to tax — including “Axie Infinity”.
Tionko, meanwhile, reminded the public that earnings from online money-making platforms and schemes that have been sweeping the digital space over the past few months were subject to income tax.