PH Developers and Players Look for Clear Regulations for NFTs from Government

As the Philippines slowly becomes a global hub for the NFT industry, developers and players within the local community are urging the government to implement the necessary regulations such as taxation in light of unclear governance. MetaDhana Studio, a Filipino-owned tech startup and the developer of the first local NFT game Rooster Wars, noted that taxation can easily be integrated into the game should government regulation be enforced.

“People are already making full-time income through NFT playing in gaming leagues,” explained MetaDhana CEO Mikhail Jon Peñalosa. However, “until now the regulations are not clear. 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 of tokens from gaming? We don’t know, not very clear.” He added that the company would be “very pleased to be working with the government” on this front.

Meanwhile, MetaDhana Chief Technology Officer Michael John Peña backed their willingness to provide assistance in the implementation of regulations so long as it still promotes an environment of innovation from developers. “One aspect we’re thinking, we want to regulate developers who are raising funds, liability clause and stuff like that,” elaborated Pena, pointing out that some developers fall out of their projects even after securing funding.

NFT community leagues, composed of players, are also welcome to the introduction of government regulations to have clear guidelines on what can be taxed from these activities. Peñalosa is hoping to make the Philippines a global NFT hub following the success of Axie Infinity. He pointed out that the Philippines is the world’s biggest NFT market.

From December to January, the NFT space grew to become a $5-billion industry “and what’s interesting is the Philippines is actually one of the highest trading volumes, we command at least a good chunk of that,” affirmed Peñalosa. The country has become a particularly attractive market for NFT gaming as 40% of Filipinos are well-versed in the space while 40% are already aware but have not necessarily participated in the industry, based on data from Axie.

Source: Manila Bulletin