China Restricts Conversion of Game Tokens to Fiat Currency for Easier Management
The Chinese government is proposing a ban on converting game tokens to fiat currency to tightly regulate the rapidly growing web3 gaming sector. These regulations are part of a draft outlining new rules for the gaming industry aimed at stricter control over the digital economy, particularly in blockchain gaming.
This move is seen as a direct response to the increasing integration of blockchain technology in games, where cryptocurrencies and non-fungible tokens (NFTs) are widely traded and capable of being exchanged for real-world money.
The proposed rules primarily aim to minimize financial risks, prevent illegal fundraising, and combat money laundering, issues often associated with unregulated use of virtual currencies (cryptocurrencies).
In addition to the ban on currency conversion, the draft imposes stringent standards on virtual token issuance, emphasizing transparency and fairness in token sales and distribution to protect the interests of players and maintain financial stability.
The proposed regulations also stipulate that providers of token trading services must adhere to a real-name registration system and are prohibited from offering anonymous trading services. This tightening of trading systems aims to facilitate easier oversight by government authorities.
This regulatory initiative underscores China's proactive stance in addressing the challenges posed by the rapid evolution of digital economies, particularly within the burgeoning blockchain gaming sector.
