[Wise Crypto Life] 12. Blockchain and Games

[Wise Crypto Life] 12. Blockchain and Games

Date: Jul. 14, 2021, 02:00 PM KST

What is a blockchain-based game?

One of the industries that are actively using blockchain technology is games. Blockchain-based games are similar to the traditional games in that they are a form of entering a virtual world, performing certain actions according to the rules of that world, obtaining rewards (scores, items, abilities, etc.), and buying and selling items. The difference is that for blockchain-based games, the in-game items are provided in the form of NFTs that users can own, further enhancing their value and rarity.

Due to the nature of NFTs, the item becomes the only item in the world with a unique identification value. Even if the service of the game that this NFT was acquired in is terminated, its value can be preserved and used in other games or converted into cash.

However, blockchain-based games are currently not available in Korea. Recently, a representative of a game company in Korea held a one-man protest in this regard, bringing more attention to this issue. In this Wise Crypto Life edition, we will discuss the issues surrounding blockchain and games.

Not in Korea

In order for a game to be officially released in Korea, it must go through the classification process of the Game Management Committee (hereinafter referred to as the Game Committee). However, blockchain-based games cannot be serviced in Korea as the Game Committee has decided that a game based on blockchain cannot be classified.

The reason the game board rejected the classification of blockchain-based games is because of gamling speculations. The position is that the cashable “property benefits” of NFTs can be achieved “accidentally” while playing the game may constitute as gambling, which is especially dangerous for minors who could fall into the game for money purposes.

This issue has been in conflict for several years but the positions of the two sides have only been at odds with each other with no compromise. Naturally, most of the domestic game companies gave up domestic services and released only overseas games. However, this issue has been brought up once again as games that adopt blockchain have been more actively researched and released.

The game industry believes there is no reason to discriminate against blockchain-based games because it is no different form than conventional games, where game users can acquire items based on some probabilistic factors while playing with individual time and effort. Additionally, now that new concepts of blockchain and cryptocurrency have emerged, it is necessary to revise and support legislation that reflects these changes. On the other hand, the Game Committee maintains its principle of not overturning the existing interpretation unless the current law where users ‘cannot convert tangible and intangible results obtained in the game’ is changed.

What is the future of blockchain games?

Recently, to improve these problems, the National Assembly held a policy debate to listen to the opinions of those concerned, and there seems to be some signs of progress. However, last May, the Ministry of Culture, Sports and Tourism said that it would discuss a separate classification standard for blockchain games, but no announcement has been made yet.

It is a pity that the system puts a brake on the development of the game industry in Korea, a game powerhouse. In this situation where many people are waiting to see when blockchain games can be enjoyed in Korea, will the game industry and regulators be able to bridge the gap between their positions?