Tap2earn projects: are they legal?
- Obtaining tokens of tap2earn projects by citizens of Belarus
- Is it allowed to receive tokens from tap2earn projects?
- The hamster gave out tokens, what's next?"
- Was "tapping" for three months, received tokens, sold them on the exchange and received money on the bank account. Do I have to pay taxes?
In 2024, there was a rapid growth in the popularity of "tap2earn" projects - Notcoin, Hamster Kombat, Banana and others.
Tap2earn projects involve users receiving in-game currency for in-game actions ("tap" on the screen, etc.), which can be converted into tokens automatically or semi-automatically (e.g., by conducting retro-drops). Afterwards, users are offered to exchange the received in-game currency for tokens in a certain ratio (e.g. 1000 in-game coins - 1 token).
Such projects attract the attention of users all over the world, and in Belarus too, and we decided to consider the issues of legality of such income.
Obtaining tokens of tap2earn projects by citizens of Belarus
In essence, such a transaction may be recognised as a giving of tokens: in a gift, "the giver gratuitously transfers to the donee a property right (claim) against himself ... ".
In-game currency mediates the user's request to transfer a certain number of tokens in proportion to the amount of "earned" in-game currency.
It should be noted that in Belarus, marketing activities in the cryptosphere (e.g. air- and retro-drops) aimed at attracting users are not regulated by the legislation.
We also remind you that participation in such projects does not guarantee income, and investing in tokens issued by such projects may result in a complete loss of funds.
Is it allowed to receive tokens from tap2earn projects?
In case of the above-mentioned projects, the issuers are non-resident companies of Belarus. Accordingly, the requirements for transactions that token issuers can perform are set in the state of which the token issuer is a resident.
The list of transactions allowed to be performed by Belarusian resident individuals is set out in clause 2.2. of Decree No. 8 and it is closed.
It should be recalled that this list allows individuals to "gift and bequeath" tokens, among other things. Accordingly, individuals are also entitled to receive tokens as a gift - which, in fact, is what happens when converting in-game currency into tokens.
The hamster gave out tokens, what's next?"
After receiving tokens, many people wonder "how do I convert them into real money?".
In practice, there are two options - the tokens received by the user are offered to "withdraw":
- to accounts on crypto exchanges where the token was listed;
- or, for example, in Wallet on Telegram.
When withdrawing tokens using the ways mentioned above, individuals have the opportunity to:
- sell/exchange tokens by placing an offer in the crypto exchange's trading system;
- or sell/exchange via P2P-functionality (a similar opportunity is provided to users who have "withdrawn" tokens to Wallet in Telegram).
Pay attention that the sale/exchange of tokens via P2P-functionality, taking into account the current law enforcement practice in Belarus, may be qualified as illegal entrepreneurial activity (clause 2.6 of Decree No. 8).
Was "tapping" for three months, received tokens, sold them on the exchange and received money on the bank account. Do I have to pay taxes?
If an individual "withdraws" income from cryptocurrency transactions in a bank account/payment card (while complying with the restrictions stipulated by Decree No. 8), such income is not subject to income tax due to the existence of the exemption until 01.01.2025.
If you need help/consultation in terms of organisation and support of cryptoproject activities (mining, crypto exchange, crypto exchange, ICO organiser, other business model), write to us at g.yakushev@revera.legal.
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