A trader on Taiwan’s MaiCaoin Max crypto exchange won the 10 million NTD ($310,000) lottery involving tax receipts. Surprisingly, this trader has only paid $2 NTD ($0.06 USD) in fees on the exchange for the small amount of trade.
The unnamed MaiCoin trader was awarded 10 million NTD (approximately $310,000) as the grand prize winner in the monthly national lottery draw. Rather than trading profits or tokens, the winner’s fortune originated from the Taiwanese government’s unorthodox tax compliance scheme.
For crypto exchanges like MaiCoin, each trade on their platform technically represents a taxable event.
Therefore, top traders could accumulate dozens or hundreds of these virtual lottery tickets per month through frequent trading activity and transaction fees.
This lottery system was introduced in Taiwan in the 1950s as a creative way to encourage tax compliance and enforcement at the consumer level. While tax agencies worldwide continue to grapple with capturing revenue from cryptocurrency holders, Taiwan’s receipt lottery scheme provides an indirect way to benefit from crypto exchange earnings.
The recent $310,000 win marks the largest crypto trader lottery prize to date. However, Taiwan’s tax receipt lottery frequently produces smaller windfalls. In 2021, the country collected over $7 billion in sales tax revenue, with nearly half paid out in lottery winnings.
Critics argue the system inefficiently improves tax compliance.
However, Taiwan maintains one of the most effective tax regimes in the world, with impressive revenue generation compared to GDP. And tales of dramatic lottery jackpots provide great PR for the scheme.