The South Korean blockchain gaming industry is concerned that regulators are unfavorable to games based on non-exchangeable tokens after the Game Classification and Governance Committee (GRAC) postponed an NTF-based Five Stars application on 22 September.

According to iNews24, the agency decided not to give a Five Stars rating to the game developed by the South Korean technology giant Kakao. The company is known for its recent investments in the local crypto industry.

Impossible tokens, or NFTs, are unique and verifiable cryptographic tokens, even if they are issued according to the same specifications as other tokens of this type.

Domestic law requires GRAC to evaluate any video game – online or offline – created by South Korean companies before it is published. At the time of publication, GRAC has not yet given an official reason for the delay in the app given by the developers of the Five Stars app.

However, iNews24 notes that the “most likely” reason for the delay is the planned implementation of the Special Payments Act in 2021, which tightens the rules on anti-money laundering (AML) for financial services, including cryptography. This has led to speculation that NFT-based games may need to implement KYC in order for users to trade with each other in the future.

This is not the first time a blockchain-based game has problems with organizer approval. Infinity Start, an NFT-related game created by the local company NodeBrick, was not green lit by GRAC in 2019.

At the time, the regulator made it clear that it could not assign a rating to a game if the items could be purchased, sold and sold by users of the Ethereum (ETH) network.

Local analysts reported by Fn News were not optimistic about rejected requests from the companies behind these blockchain games:

“If NFT is the problem, the death note for blockchain games has already been signed.”

Cointelegraph recently interviewed Craig Russo, Innovation Director at Polyient Games, an investment firm that builds, manages and distributes NFTs.

He believes that the NFT market has become one of the “most compelling opportunities” for all digital assets, with real-time use cases already in place in art, collectibles and even games.

Source: CoinTelegraph