Korean regulators to ban high reward games including crypto & block gaming

The regulators of South Korea ordered the app stores to block all kinds of gaming apps, which requires first purchase before use, P2E games.

In recent years, South Korean regulators showed high attention towards the crypto and blockchain industry, to restrict any kind of illicit activities in South Korea. Recently, South Korean regulators imposed two important restrictions on all the exchanges to follow the guidelines like ISMS certification. Around 4 out of 64 exchanges succeed to pass the guidelines to facilitate full fiat-crypto and crypto to fiat pair trading services. However, 28 crypto exchanges are only allowed to give crypto-crypto pair trading services. 

Now the latest move of South Korea’ The Game Management Committee (GMC) in the Ministry of Culture, Sports, and Tourism seeking to block all crypto gaming applications that can spoil the game users. 

Under the new order, the Gaming Watchdog agency ordered Google and Apple to remove the P2E gaming applications from their stores. 

Under a rule, no one game can give a reward of more than 10,000 KRW ($8.42). But as we know that crypto and blockchain-based gaming platforms are getting better attention in this crypto and non-crypto industry to give high profit to the game players. But the main thing is that a game user needs to buy NFTs first and then he can use the game to play to earn other unique NFTs items. Game players further can sell to make a profit. This thing is totally against the existing rules of Korean Watch Dogs. Because on one hand, people needed to buy the game before to play and after that selling of NFTs will give a very high reward rate to the game user, which is further wrong against the 10,000 KRW threshold amount. 

Through the official statement, regulators stated that

“It is reasonable to keep P2E games from getting age ratings under the current law because cash rewards in games can be considered prizes.”

Earlier this, Fivestars for Klaytn P2E game, which is based on NFTs, won a legal status for its game but still the order to get a list of such kinds of game will take time, as per reports. If this decision of the regulators will be final then surely it will put a negative impact on the P2E gaming projects special NFTs based. 

Read also: Australian watchdog revealed how they infiltrated crypto ‘pump and dump channels