How PrivacyCards can cater to the increasing number of Filipino crypto investors
Whenever there is a newly elected leader these days, his or her stance on cryptocurrency is always brought up. Investors are always left wondering if these new leaders are interested in regulating digital assets. Now that the Philippines finished its presidential election, for instance, President-elect Ferdinand Marcos Jr. mentioned that one of his plans is to tax plastics, influencers, and cryptocurrency. What could this last bit mean to Filipino investors?
After winning the May 9th Presidential election, president-elect Ferdinand “Bongbong” Marcos laid his agenda for the country. Addressing the rising poverty and education concerns in the country, Marcos announces possible taxation to influencers, plastics, and cryptocurrencies.
Last Monday, the Philippines Department of Finance presented a tax proposal to raise cash to assist in paying back 3.2 trillion Pesos (US$61 billion) in debt connected to the Covid-19 outbreak. Among other things, the proposal asks for additional cryptocurrency taxes by 2024, increasing concerns that Manila would end up like India, which imposed a 30% flat tax on all cryptocurrency income on April 1.
If the Philippines adopts the India crypto model, “it will kill the industry,” according to Emman Navalan, CEO of Tetrix Network, a Filipino blockchain platform. Navalan mentioned that there is no problem with the possible taxation of cryptocurrency as it welcomes a greater adoption of digital assets.
When the DOF was asked about any further details regarding the taxation, Navalan is yet to elaborate on the details as these are new matters for the administration.
How will it affect Filipino Investors?
Finders mention that the Philippines seats in fifth place among the countries with most crypto traders. 28% of the population is said to own some sort of cryptocurrency. The most popular cryptocurrency in the country is Bitcoin, Bitcoin Cash, Ripple, and Litecoin. In addition, the Philippines has also the largest percentage of axie infinity players.
Additionally, in August 2021, the Philippines had the most monthly active users of MetaMask than any other country. This accounted for 20% of MetaMask’s total user base, which at the time was 10 million users around the world. According to a local website called Bitpinas, after another three months, the number increased by 78.5 percent, going from 2 million to 3.57 million. This represents 17 percent of MetaMask’s total 21 million users around the world. Filipinos indeed love to invest in cryptocurrency as it allows them to transact freely from one platform to another without undergoing rigorous verification compared to banks and other investments. Obtaining a bank account is difficult, and the Philippines is not excluded. There are numerous requirements in order to obtain a bank account. From multiple government IDs, photographs, supporting identifications, and more. Therefore, banking and investment could be hard for those who cannot provide such requirements.
With that, people opted to look for an easier way to earn money without the need for such a verification process. That is why crypto is also booming in the country. Moreover, it is believed that crypto taxation will be implemented in 2024, and everyone is already sharing their thoughts on crypto taxation. Youtuber Gab’s crypto was mentioned in one of his recent videos, “Filipinos are ok with taxation, but what’s not ok is where their taxes are going.” Investors are also expecting much clearer details as most are agitated about the announcement of taxation.
Moreover, the impact of such taxation is still vague as this is a fresh topic in the country. It has been emphasized in the proposal from the DOF that the incoming Marcos government must first clarify the tax treatment of transactions involving cryptocurrencies. The agency has not provided any information regarding the impact of such policies on economic revenue.
Mass adoption is really happening and it is reaching almost every country in the world. PrivacySwap comes prepared in light of this crypto adoption. Now that taxation and regulation are gaining mainstream popularity, cryptocurrency is becoming more and more secure and trustworthy, thanks to projects that ensure this is the case. More people are already investing in the platform, and as a project, PrivacySwap is thrilled to see it. We appreciate the move toward mass adoption, considering that there will be more people who can benefit from our features such as PrivacyCards, PrivacyDEX, and more that aim to be the bridge to Defi and Fiat transactions.
Moreover, we hope to cater to more investors by providing our amazing features as the DeFi and CeFi unite.
Come and join us.