China introduces ban on converting game tokens to fiat currency.

The General Administration of Press and Publications (GAPP) of China aims to limit the scope of activities related to in-game tokens. On December 22nd, GAPP published its draft guidelines for the online gaming industry, which should prohibit the purchase of physical goods and the exchange of game tokens for legal tender.

The guide contains 62 articles and covers many issues related to the regulation of online games. It offers some strict rules: the companies must obtain a license in China, store their customers' data for up to two years, ensure that their content is linked to a list of nationalistic and socialist values, and rule out any possibility of anonymous registration. Users.

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Article 23 regulates the use of game symbols. It will prohibit the use of Game Tokens to purchase physical goods, in exchange for “products and services of other parties” or “legal tender”. The latter point leaves room for speculation, as cryptocurrencies do not qualify as legal tender in China and there is nothing specific about “crypto” in the guidelines. However, GAPP seems to be trying to protect online game economies from a strict exchange with the real economy.

The guidelines restrict game providers from offering rewards such as registration or daily login bonuses. Providers must set user recharge limits and pop-up window warning notices for “unreasonable consumption behavior by users”.

The guidelines have been published for public consultation and are not yet legally binding. The deadline for consultation is January 22, 2024.

According to Dapradar data, nearly one million unique active wallets have been deployed on Web3 games every day in the past three months. Yat Siu, co-founder of gaming and venture firm Animoka Brands, estimated that this number could increase to 100 million next year in a December 17 interview with Cointelegraph.

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