Heated Blockchain Competition in the Gaming Industry... Numerous Pending Issues Remain

[Asia Economy Reporter Seungjin Lee] Netmarble has launched its own blockchain platform, marking the beginning of serious blockchain competition in the gaming industry. However, the core content within the platform, 'P2E' (Play to Earn), is deemed illegal in South Korea, and various issues remain due to insufficient blockchain-related laws and regulations.

Netmarble's Blockchain Platform Officially Launched

According to the gaming industry on the 19th, Netmarble officially released its own base currency-based blockchain ecosystem 'MBX' and the 'MBX Wallet' service. Along with the launch of MBX, Netmarble began circulating MBX tokens used as the base currency within the ecosystem. Users can trade MBX through token swaps on the decentralized finance (DeFi) service KlaySwap.

Alongside this, the MBX Wallet application was also introduced. The wallet app supports functions such as storing MBX, exchanging in-game currencies like ores for game tokens, and token swaps between MBX and Klaytn. Netmarble's total MBX issuance is 1 billion tokens, of which 300 million will be allocated to users participating in the blockchain ecosystem.

Netmarble has started service by updating blockchain content in the existing version of 'A3: Still Alive Global' and plans to continuously expand the ecosystem by launching blockchain-based games such as 'The Second Country', 'Monster Taming Arena', and 'Everyone's Marble: Meta World'.

With this, the domestic gaming industry has entered a competition involving blockchain platforms and cryptocurrency issuance, with companies like Wemade, which first introduced a blockchain platform, Netmarble, Kakao Games, Neowiz, and Com2uS all participating.

Domestic P2E Illegal, Cryptocurrency Laws Inadequate

The problem is that P2E games are illegal in South Korea, and accounting standards for cryptocurrencies remain ambiguous. For example, recently, Wemade faced controversy for recognizing 225.5 billion KRW in cash obtained from selling its self-issued cryptocurrency (Wemix) all at once as 4th quarter 2021 revenue. Opinions were divided on whether this could be considered revenue.

Ultimately, after controversy, Wemade excluded the revenue generated from selling Wemix from last year's sales. A Wemade representative said, "At the time of the earnings announcement, after consulting with a major accounting firm and long-term review, we judged that liquidity should be recognized as revenue, but just before submitting the business report, the auditor gave a final opinion that it should be accounted for as deferred revenue."

However, during this audit process, it was confirmed that Wemix platform revenue would be recognized as sales. Wemade stated, "Until accounting standards related to blockchain business are established, we will closely consult with accounting firms, the Financial Services Commission, and other relevant institutions, and continue transparent communication with the market."

Due to the lack of properly established laws, issues may arise later for game companies like Netmarble and Kakao Games, which are successively issuing cryptocurrencies. Additionally, although domestic game companies have each announced plans to enter the P2E market, the fact that it is illegal in South Korea remains a problem to be resolved.

Will the Yoon Seok-yeol Government, Supported by Men in Their 20s and 30s, Offer Solutions?

The gaming industry is focusing its attention on the upcoming Yoon Seok-yeol administration. Since the administration has pledged to revitalize the gaming industry and was elected with the support of men in their 20s and 30s, expectations for fulfilling these pledges are high.

Notable pledges include the enactment of a Digital Asset Basic Act and the establishment of a Digital Industry Promotion Agency, both related to cryptocurrencies. In particular, the revival of Initial Coin Offerings (ICO) and the promotion of Non-Fungible Tokens (NFTs) are seen by the industry as pathways to legalizing P2E. ICOs are similar to Initial Public Offerings (IPOs), where companies issue virtual assets and sell them to investors to raise funds.

In P2E games, in-game currencies are exchanged for game tokens, which are then converted into coins listed on exchanges and cashed out. If ICOs are revived, the path to cashing out in-game currencies domestically will open.

An industry insider said, "While blockchain businesses are legal overseas, they are often illegal or lack relevant laws domestically. Since the candidate emphasized gaming-related pledges during the campaign, we hope these pledges will be fulfilled."

This content was produced with the assistance of AI translation services.