imagine it
paying tax on ingame purchases.. turns Steam into tax reporting agents of its customers rather than games retailers
so soon you wont be able to play online games without KYC
How things are going, it should not be a surprise Steam and Epic Games would ask for full KYC in a decade or earlier.
But it would make more sense it was related to MMORPG's where people can partake in a secondary market of in-game currency, which gains are (of course) taxable.
with the possibility of imposing taxes on NFT games that generate money it will have a big impact on players, the development of NFT games that generate money has not been fully accepted by many people, if news like this already appears then I doubt people will be interested in playing NFT games in the future ahead.
Well, in all fairness, this is probably the right thing to do, especially at this point in time when NFTs are apparently used for money laundering. Somebody can make millions of dollars in legitimate transactions selling pixelated images and monkey jpegs. So I guess it's just the IRS doing its job well. This may be perceived as a villain agency but it's just performing its mandate.
But what I'm particularly amazed at is how updated the IRS is on what's happening around. In my country, the Bureau of Internal Revenue is clueless and is still operating on archaic policies.
as a bureau with authority, they are reasonable to make tax regulations on NFTs, especially now that NFTs are already categorized as digital assets, but the rates are quite high, just imagine up to 20% ++ of the value of the NFT assets.
I don't think it will be a huge impact on the NFT ecosystems, because (if I recall correctly) those players who are interested in Play-2-Earn games are from countries which are not developed, like Latin America and South Asia, for example. Where the minimum wage is low.
In the case of those in the United States, they are mostly interested in NFT's as a speculative vehicle, those who buy and hold APE NFT's would be encourage not to sell them, so they would not have to pay the taxes. It may translate in a decrease of the volume, but I am not sure yet if this could be positive in a context of less supply (less people selling) and the same demand.