Posted 9 months ago | by Ben Armstrong
South Korean Regulators Not Supportive of NFT-based Games
Although South Korea could be one of the most crypto-friendly countries in the world, the national regulators seem unwilling to implement non-fungible token innovations for the gaming industry
Online Korean publication iNews24 recently revealed that the regulator chose to delay issuing a ranking for Five Stars, an NFT-based game created by South Korean tech superpower Kakao. The organization has recently received recognition for its ventures in the local industry.
South Korea is Hard on NFTs – Apparently
Non-fungible tokens or NFTs are unique crypto tokens, and have a huge potential in gaming.
Local government requires GRAC to evaluate any video game developed by South Korean companies whether online or offline before it is made public. The GRAC has not yet given a formal explanation for holding off the request issued by the Five Stars developers.
The explanation for the delay, according to iNews24 suggestion, is nevertheless “highly probable” motivated by 2021 imminent introduction of the Special Payment Act, which reinforces financial services’ anti-money laundering (AML) laws including crypto.
NFT-based games would have to adopt KYC in the future, at least if they are domiciled in South Korea.
Probably a Bad Idea for Regulators to be Strict
It is no surprise gaming regulators are reluctant about new blockchain-based games.
Infinity Start, an NFT-based game developed by South Koreas firm NodeBrick, also had issues with GRAC’s approval in 2019, as regulators seem to be negative on these kinds of games.
In response to concerns at that time, the regulator clarified that a game whose products were purchased, sold and exchanged in the Ethereum (ETH) blockchain could not be given a ranking.
In a recent interview with media, Craig Russo, Innovation Director at Polyient games shared his views on the case.
The director thinks that the NFT market is one of the most lucrative opportunities for all the digital properties and already has instantaneous adoption in games, collectibles and art.
While it might be bad for the industry in South Korea if the regulators continue to be problematic, NFT based gaming will just go offshore, and the local market will suffer.
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