NFT game items are speculative, Korean court says


Last Friday, a South Korean court ruled against the release of a blockchain-based play-to-earn (P2E) game due to the in-game non-fungible tokens (NFT).

Fast facts

  • According to court documents, SkyPeople, the South Korean developer of Five Stars, argues that game items and characters minted as NFTs are not rewards but records of ownership.

  • Seoul Administrative Court dismissed SkyPeople’s appeal against the GRAC’s refusal to process the age rating for Five Stars. According to the court, trade of NFTs cannot be game items.

  • On OpenSea, Five Stars’ collection had 2,249 owners as of Jan. 17.

  • South Korean video games must have an age rating from the game rating committee.

  • In South Korea, games involving cryptocurrencies or NFTs have been banned by the game rating committee due to a local law prohibiting companies from promoting speculative behavior to players.

  • As part of his election campaign, South Korean president Yoon Suk-yeol promised to abolish the ban.

  • Despite the local ban, South Korean P2E game makers have released blockchain-based games abroad.

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