GAPP Proposes New Draft Guidelines to Limit In-Game Token Use in China's Online Gaming Industry
Summary:
China's Press and Publication Administration (GAPP) has proposed new draft guidelines for the online gaming industry that aim to limit the use of in-game tokens. The guidelines suggest stricter regulations, requiring companies to obtain a license, hold customer data for up to two years, ensure content abides with national and socialist values, and eliminate anonymous registrations. Although cryptocurrencies are not explicitly mentioned, the proposal to prohibit trading game tokens for 'valid currency' leaves scope for speculation. The guidelines are undergoing public consultation until January 22, 2024.
China's Press and Publication Administration (GAPP) is contemplating limiting the activities associated with in-game tokens. On December 22, the authority revealed its draft guidelines targeting the online gaming industry, proposing a ban on the purchasing of physical products and the conversion of game tokens into actual money. The guidelines, which consist of 62 clauses, touch on numerous aspects of online gaming regulation. They suggest stricter measures that would require gaming companies to secure a license in China, retain customer data for a period not exceeding two years, align their content with national and socialist principles and eliminate all forms of anonymous user registration. Article 23 in particular governs the use of game tokens, proposing the prohibition of their use for acquiring physical goods, trading them for 'other unit's commodities and services' or 'valid currency.' This leaves one speculate about the implication for cryptocurrencies since they are not recognized as legal currency in China and the guidelines do not categorize them as 'crypto'. Nevertheless, it seems that GAPP is seeking to isolate the economies of online games from extensive integration with the actual economy. The guidelines further propose to bar game providers from offering incentives such as bonuses for joining or daily logins. They must also set limits on user recharge and incorporate warning pop-ups for 'irrational user spending habits.' These guidelines are currently open for public feedback and do not yet have legal enforcement power. Public consultation will conclude on January 22, 2024. As per DappRadar, an estimated one million unique active wallets interacted with Web3 games daily over the last quarter. This figure is expected to grow by up to 100 million in the coming year, according to a recent Coin telegraph interview with Yat Siu, the co-founder of Animoca Brands, a gaming and venture establishment.
Published At
12/22/2023 3:50:38 PM
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