The South Korean authorities have demanded that Apple and Google app stores stop distributing P2E games in the country, calling gamers’ income a “prize” that should not exceed $ 8.4.
Blockchain games based on the Play-to-Earn (P2E) principle are becoming more and more popular. In them, gamers receive rewards for certain actions, and also use non-fungible tokens (NFT) to sell in-game items or virtual real estate. South Korea Gaming Management Committee (GMC)
considersthat such games can be tools for speculative earnings.
Given that cryptocurrencies can be exchanged for regular money, tokens earned from participating in P2E-based games should be categorized as prizes and not considered additional income. According to the Law on the Promotion of the Gaming Industry, the maximum cash prize in South Korea is capped at 10,000 Korean won (about $ 8.42). However, the rewards received by users in GameFi projects significantly exceed the established limit.
The committee asked tech giants Apple and Google, as well as all app distributors, to block P2E-based games in South Korea to prevent citizens of the state from using them. The regulator noted that it does not prohibit games on the blockchain. The ban only applies to games using the P2E model. Earlier, GMC chairman Kim Gyu-cheol said that the committee does not impede the development of the latest technologies such as blockchain and NFT, but only tries to prevent speculation with their use.
Recently, China Central Television (CCTV) also called token-earning games (GameFi) and NFT gambling, warning citizens of the risks of participating in them.
In November, South Korean regulators began preparing taxation of income from cryptocurrency trading. The Financial Services Commission (FSC) of South Korea believes that collectible tokens should also be taxed.
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