Games based on blockchain and non-fungible tokens (NFTs) have been successful throughout 2021. One of the issues that most concerns this industry are regulations, something that was debated during the sixth edition of the virtual event European Blockchain Convention.
Rudy Koch, co-founder of Mythical Games and one of the convention panelists, considered that not enough discussed about the regulatory aspect of the industry of NFTs and video games.
“I have been involved in presenting the Mythical Games use case to 50 state regulators in the United States and the European Union. We are concerned about the money transmission licenses and all the regulations and compliance that revolve around that, “said Koch.
In that sense, he stated that regulatory agencies are there to protect consumers, but it is also essential protect companies that are entering that space, something the panelists agreed on.
Koch also gave the example of properties in video games or metaverses. “You want to lean on true ownership, and if you buy an item, you can do whatever you want with it, because it’s yours. We no longer have control over that element of the game, but neither can we ignore that with this NFT you can commit fraud or launder money.
That is why you believe that if someone gets scammed, they may blame the Web3. Although he also recognized that regulations are evolving and they are in “constant motion.”
Laws in the United States must change
The debate was joined by Sarutobi Sasuke, an executive at Yield Guild Games, one of the companies behind the popular game Axie Infinity. It indicated that the United States Securities Act needs updating.
«It will be difficult for them [EE. UU.] stop because there is still this mechanism by which entities offshore they can be used to issue tokens and this kind of separation of their corporate structures to try to circumvent regulations, but they just wonder how the regulators are going to get what happens in the metaverse.
In Sasuke’s opinion, regulators are “concerned” because the industry should pay taxes on the income they get in the metaverse. “Governments know that people are spending more and more time in virtual worlds, so I’m sure they’re going to want to get a piece of that huge pie at some point.”
The executive even asked himself “How is revenue regulated in the metaverse? Or How do you tax gambling items? “, To which he jokingly replied that perhaps regulatory agencies should” open an office in Decentraland [metaverso de entretenimiento basado en Ethereum], for example”.
Sasuke’s comment comes up, for the amount of companies that have joined the metaverse and acquired virtual properties for millions of dollars and they don’t pay taxes for it. Such is the case of the company Tokens.com Corp, which bought the largest tract of land in Decentraland for USD 2.8 million, a fact reported by CriptoNoticias.
Future of Esports
When asked about the future of the sports (esports), Koch said that gamers and fans wanted to get involved in the ecosystem and created all this “new and interesting” dynamic set between games and income stream.
The executive was happy that the property over elements of video games are transferred to esports. “That fans can get closer to the esports teams they love is so cool, that they can own an NFT related to video games.”
In that sense, he gave as an example that in the future it may be possible for an Esports fan to acquire the weapon used by your favorite team in victory of a world championship of some video game.
For his part, Sasuke sees that the games turned into Esports have grown and considers that the games Play to Earn or that make players win cryptocurrencies, increase that intensity.
«Axie Infinity, for example, has a fairly active Esports community and if the Axie had developed like the traditional ones, it might not have been as successful, the type of video games related to electronic sports, in the same way that they have now, ”Sasuke pointed out.
He added that Esports and play to earn blockchain-based “go very well together.”