A trader on Taiwan’s MaiCaoin Max cryptocurrency platform has gained 10 million NTD ($310,000) thanks to a tax receipt lottery instead of trading profits. The reason for this was not because some small-cap token shot to the moon, but rather because MaiCoin pays its taxes.
The unidentified MaiCoin merchant won the top reward of 10 million NTD ($310,000) in the monthly national lottery draw. The winner’s money came from an unconventional tax compliance mechanism used by the Taiwanese government, not from trading earnings or tokens.
Each trade made on platforms operated by cryptocurrency exchanges like MaiCoin technically qualifies as a taxable event.
In order to promote tax compliance and enforcement at the consumer level, Taiwan implemented this lottery system in the 1950s. Taiwan’s receipt lottery program offers a covert opportunity to profit from bitcoin exchange gains while tax authorities around the world struggle to collect money from cryptocurrency owners.
The most significant cryptocurrency trader lottery prize to date is the recent $310,000 win. Taiwan’s tax receipt lottery, however, typically results in smaller winnings. Nearly half of the nation’s $7 billion in sales tax revenue was distributed as lottery wins in 2021.
However, Taiwan continues to have one of the most efficient tax systems in the world, generating tremendous amounts of money relative to GDP. Stories about huge lottery winners also boost the scheme’s public relations.
While there hasn’t been a solution for crypto taxes yet, Taiwan’s age-old lottery system provides an interesting case study for making money off of trading in digital assets.
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