China Proposes New Regulations for Game Tokens
Summary
The General Administration of Press and Publication of China (GAPP) has issued a draft proposing substantial changes to the regulation of in-game tokens within the online gaming sector. The proposed regulations state that game tokens cannot be exchanged for physical products or used as currency. The rule covers 62 items and impacts various online gaming activities. The regulations also impose stringent compliance measures on gaming businesses, including the removal of anonymous user registrations and adherence to national and socialist principles in content.
Introduction
A draft recently issued by the GAPP in China describes significant changes to the regulation of in-game tokens. This decision marks a strategic shift in the country’s attitude towards digital currency in gaming. The proposed regulations prohibit the exchange of game tokens for physical products or use as currency. The new rules cover 62 items and have a wide impact on online gaming activities.
Main Points
The proposed regulations impose stringent compliance measures on gaming businesses, including the removal of anonymous user registrations and adherence to national and socialist principles in content. Other measures include a two-year data retention policy and obligatory licensing in China. Article 23 of the rules specifically addresses the restrictions on the exchange of game tokens for tangible goods, services, or legal cash.
The restrictions are complicated by the fact that cryptocurrencies are not recognized as legal currency in China. Game developers also need to take measures to prevent excessive spending by players and comply with new restrictions on bonuses, such as signup or daily login bonuses. The guidelines are currently available for public review until January 22, 2024, allowing for comments and possible revisions before formal enactment.
The Web3 gaming industry has been active in the past three months, with over one million unique wallets engaging daily. However, experts anticipate that these new regulations may significantly impact the industry’s future.
Conclusion
The GAPP in China has proposed new regulations for game tokens within the online gaming sector, prohibiting their exchange for physical products or use as currency. The regulations also impose stringent compliance measures on gaming businesses. The guidelines are currently open for public review, and experts suggest that these regulations may have a significant impact on the future of the Web3 gaming industry.