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Taiwanese Crypto Enthusiast's 6-Cent Transaction Yields $310K Jackpot in Tax-Receipt Lottery

Police & Regulations
Oct 7, 2023 at 01:53 pm

Every now and then, being diligent with taxes can lead to unexpected rewards.

In the realm of crypto trading, a mixture of luck and strategic moves often underlie a trader's success. However, sometimes, sheer luck alone can make all the difference.

A trader on Taiwan’s MaiCoin Max crypto exchange recently found themselves 10 million NTD (equivalent to $310,000) richer. Remarkably, this windfall wasn't the result of shrewd trading strategies, but rather due to a monthly lottery linked to tax receipts.

Rather than delving into high-risk small-cap tokens, this trader's good fortune arose from MaiCoin's adherence to tax regulations.

Taiwan enforces tax compliance for retailers through a system known as the “Uniform Invoice Lottery.” Retailers surpassing a certain revenue threshold are obligated to issue an official receipt to customers. Additionally, an electronic copy of this receipt is forwarded to tax authorities.

This receipt also serves as a lottery ticket number. Each month, authorities conduct a drawing for various cash prizes, including the grand award of 10 million NTD ($310,000).

For MaiCoin, every trade executed on its platform triggers a taxable event, encompassing the profit from the spread and the service fees collected. As a result, the platform's most active traders could potentially accumulate dozens, if not hundreds, of these virtual receipts.

Originating in the 1950s, this scheme was introduced in Taiwan to incentivize tax compliance by placing the onus on consumers. Those making seemingly insignificant daily purchases, like newspapers or snacks, sometimes find themselves significantly wealthier after the monthly drawing.

While tax authorities worldwide grapple with how to regulate crypto-related revenue, Taiwan appears to have discovered a solution in a long-standing program. This example shows that even in a bear market, both retail traders and tax authorities can reap unexpected benefits.

Read more: Alameda Research: Inside FTX's Exclusive Dealings

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