In conjunction with a civil complaint against WeMade’s WEMIX token, South Korea’s Financial Services Commission is currently evaluating whether P2E tokens should be considered safe assets.
South Korea’s Financial Services Commission has its eye on P2E tokens
Last Thursday, local news outlet Law Times reported that South Korea’s Financial Services Commission (FSC) is now investigating the securities nature of the P2E (Play to Earn) token. The move comes after a civil lawsuit alleged that WEMIX tokens issued by gaming giant WeMade are in fact a securities asset.
“The question of whether Wemix tokens are securities is relevant to the issue of setting the scope of securities tokens. That part is currently being discussed by the authorities and can only be determined by setting standards,” said a Financial Services Commission staffer associated with the case.
So what if cryptocurrencies (and P2E tokens) end up as securities in South Korea? In that case, any company that issues P2E tokens in the country, including WeMade, would have to file a securities registration form with the Financial Services Commission. Moreover, they can only list these tokens on an exchange that has an investment brokerage license.
A love-hate relationship with blockchain games
If you’ve been dabbling in the GameFi space for a while, you’ll surely know about the country’s love-hate relationship with P2E games. As of now, the South Korean Game Rating and Control Board does not allow any blockchain games to be released in the country due to gambling issues.
Earlier, President Yoon Seok-yeol promised to lift the ban on Web3 games to promote blockchain innovation in South Korea. But since Yoon Suh-yeol took office in May, his administration has not shown any intention of lifting such a ban. Seeing what’s happening now, it’s unclear whether local watchdogs will choose to tighten regulations around this area.
Even so, many Korean game players, such as Netmarble, Com2uS, Kakao Games, Nexon and Krafton, are bent on launching P2E games. Only time will tell if blockchain games will find their footing in this East Asian country.
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