China's Anti-Crypto Policies Threaten to Ripple Through Its Gaming Market

Chinese authorities’ recent actions to define crypto as a money laundering tool could influence the performance of its billion-dollar gaming industry. SCMP’s Hugh Harsono argues that these measures may affect games like Metacene, which has introduced cryptocurrencies as in-game currency. In addition, games that include play-to-earn components and non-fungible tokens (NFTs) could also be impacted by these policies. Animoca Brands’ The Sandbox falls into this category and might face increased scrutiny from China’s regulators if in-game transactions are classified as money laundering activities. This could also expose users leveraging the game’s mechanics to potential investigations, ultimately affecting the companies’ revenue as players abandon these games to avoid possible probes.