– The taxation on cryptocurrencies should be crypto-friendly in order to not kill the still evolving industry in the Philippines, according to Emman Navalam, CEO and co-founder of Tetrix Network.
– A bill or legislative measure that may be crafted on cryptocurrency taxation should be crafted in a way that it will be crypto-friendly.
– Navalam cited Indias 30 percent tax on crypto which he said would kill the industry.
– While he agreed with the Department of Finance (DOF) that the new measures are critical as the new administration is set to take over a country whose sovereign debt hit a record of P12.68 trillion, the focus should really be on tax administration.
– Tetrix also believes that the Bangko Sentral ng Pilipinas should pursue steps to protect crypto investors to create confidence and adoption.
– The BSP has been actively studying and working on digital assets which include Central Bank Digital Currency (CBDCs). Currently, there are licenses for companies with digital asset operations.
– Navalam said that in terms of transactions and ownership, the Philippines ranks among the top countries in the world making it very attractive and strategic for web3 operators to invest in the country.
– According to Navalam, there are also challenges that prevent the development of the blockchain industry in the Philippines. These include general awareness and education, lack of developers, regulatory clarity, high licensing fees, and nascent solutions.