The South Korean government has taken steps to stop the release of new metaverse and play-to-earn (p2e) games in its country. In addition, it now requires that existing p2e games be deleted from Google Play and Apple’s App Store.
These play-to-win games have become popular in the cryptocurrency industry in recent months. However, the requirement for prior purchases to access the games, as well as payment per activity, are prohibited in the country.
The Game Management Committee (GMC) of the country’s Ministry of Culture, Sports and Tourism has urged major app markets to ban all games that require in-app purchases before playing.
While this government’s attempt to curb the growth of play-to-earn games has been new since April, South Korean game developers have been facing court battles to keep their games in national app stores.
The main problem is that some apps fail to get the required age rating for listing.
According to a South Korean GMC official, the committee only banned P2E games from obtaining age ratings and listing under Supreme Court jurisprudence.
“Under current law, it is reasonable to prohibit P2E games from obtaining an age rating. That’s because in-game cash rewards can be considered bonuses,” said the official.
In South Korea, the prize money earned through the game cannot exceed $8.42 per game.
The P2E game and NFT Marketplace Five Stars, built on Klaytn, was initially banned due to lack of ratings. But the team behind the game won the ban in June and the game was released.
The final decision on the game’s legal status is expected to set a legal precedent for other games of its kind.
South Korea’s GMC position has a negative impact on all P2E gaming apps. This includes apps related to the two most popular games: Axie Infinity and Splinterlands.