The Chinese General Administration of Press and Publication (GAPP) is drastically tightening its control over in-game tokens and online gaming activity. On December 22, the GAPP released a draft of new sector-specific regulations.
With 62 articles on online gambling regulation, the proposed guidelines are thorough. They set strict gaming company criteria. These include requiring a local license in China, retaining customer data for two years, ensuring content complies with national and socialist principles, and prohibiting anonymous user registrations.
Article 23 of these standards regulates in-game tokens. These tokens cannot be used to buy tangible goods, trade them for services or products, or exchange them for legal currency, according to the GAPP. Since China does not accept cryptocurrencies as legal cash and the draft does not name ‘crypto’, this action is notable. The consequences show the GAPP is trying to keep online game economies from mixing with the real economy.
The guidelines also prohibit game providers from offering incentives for user enrollment or daily logins. To discourage illogical spending, they propose user spending limitations and warning notifications.
These rules are currently open for public comment and not legally binding. Feedback is due January 22, 2024, from stakeholders and interested parties.
With Web3 games becoming more popular, these laws are more relevant. DappRadar reports that one million unique active wallets played Web3 games daily over the past three months.
Yat Siu, co-founder of gaming and venture firm Animoca Brands, told Nosisnews on December 17 that this amount might rise to 100 million next year. This expected expansion emphasizes the relevance of China’s regulatory landscape for global online gambling.
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