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RE: Why Tax FUD actually benefits the Cause of Crypto HODL’ers
I was also wondering to what extend video game tokens factor into this. It is a natural idea for some games to make video game items transferable on a relatively low security blockchain. To which extend is video game gold then taxable? Steem can be seen as nothing but a social network game where we swap crypto tokens. Its not our fault that people would potentially pay us money to get them. I thing this argument becomes difficult for steem as they created SBD, but you start to see that the law is not consistent. The only way to save it somehow would be to make it taxable only once it gets converted into usd.
You can find some discussion by searching Google for “WoW gold taxation”. Essentially it was thought that they aren’t taxable because it is against the EULA to exchange them outside the game. However, many people think that a strict interpretation would find them taxable. And it is possible to exchange WoW gold for real assets while violating the EULA.
so you could become a tax criminal by just playing computer games :)
Alternatively lets make a coin that says it is forbidden to exchange it for fiat :)
That was the original idea for the project I am working on (a replacement for Steem) as a way to also prevent the tokens from being securities, but it also required we prevent the tokens being exchanged for any fungible asset including other tokens such as Bitcoin. But I couldn’t reconcile the centralized entity needed to enforce the EULA with the necessary decentralization. So I thought of a better idea since then.