Welcome to the October edition of BlockchainGamer.biz’s regular Mavens group. If you’d also like to join the discussion, please contact [email protected]
How has the lack of a clear legal framework for the crypto market impacted you as a game developer?
Quinn Kwon – Head of web3 strategy, Delabs Games
Due to the lack of, or vague, cryptocurrency regulations, we are very cautious when approaching the market with any crypto-related product. Several factors have influenced our decisions in this area.
For instance, we often face the need for unnecessarily complex entity structures. This arises when regulations are unclear in one region but more defined in another, forcing us to navigate through varying legal landscapes. Additionally, changing legal rulings on product features prompt shifts in our product strategies, requiring us to stay agile and adapt quickly.
Regional bans on specific crypto elements also affect our service. Depending on the region, we may choose to offer full, partial, or no service at all. The combination of existing regulations, or lack thereof, creates significant complexity for us as a business and product developer. However, this also means there is great potential for growth in this market, and we have the opportunity to become one of the frontrunners.
As web3 continues to expand, we anticipate more regulations coming into play, which will bring greater clarity and safety for honest developers, users, and traders.
As a web3 gaming studio, our role is to keep innovating while remaining cautious and attentive to the evolving regulatory landscape. This allows us to navigate uncertainties while seizing the growth opportunities ahead.
Alexander Goldybin – Founder and chairman, iLogos
The lack of clear regulations in the crypto space has definitely made things more complicated for us as game developers. Without a solid legal framework, we sometimes have to operate in a bit of a grey zone, especially when it comes to integrating NFTs or tokens into games. This uncertainty can slow down our progress and make it harder to ensure that we’re doing things in a way that protects players and stays compliant, especially across different countries.
But on the flip side, this challenge has also pushed us to be more creative and adaptable. We’re constantly thinking ahead and staying on top of legal developments, which has actually made us better at building resilient, player-focused games. While the lack of regulation is frustrating, it’s also an opportunity to be part of shaping how the gaming industry and blockchain come together in the future.
Robby Yung – CEO, Animoca Brands
I think the short answer is, it depends on jurisdiction.
We’re big believers in games having native utility tokens, as well as playable NFT’s, so that players can benefit from the retention and reward mechanisms tokens provide. However, the legal environment in each jurisdiction does have an impact on how tokens are launched or even whether they can be launched at all in a way which does not expose the companies and their shareholders to unnecessary legal risks.
Christina Macedo – CEO, PLAY
As more people engage with crypto, both inside and outside of gaming, it’s driving a greater understanding of these technologies that I believe will lead to eventual mass adoption. So while regulatory clarity can be a challenge as it can affect routine operational decisions, we’re operating in a space where we’re trying our best to maximise innovation with confidence while still assessing risks.
Our approach at PLAY is to turn the challenges into catalysts for community engagement. We’re fostering a close-knit community among developers and players in the web3 space that’s learning from each other, navigating the challenges together, and collectively pushing for regulations that recognise the immense potential of web3 gaming and support innovation. At the same time, it’s also our aim to ensure that all stakeholders are protected and that the broader ecosystem is stable and primed for long-term, sustainable growth.
As game developers, we’re helping to define the framework that’ll support the future of digital assets and interactions in gaming environments. We’re optimistic that the gaming community will thrive in a secure, fair, and decentralised digital landscape as regulations become clearer.
Russell Bennett – CEO, Metacade
The lack of a clear legal framework in the crypto market has been both a challenge and an opportunity for us as game developers. On one hand, the absence of regulation has allowed a flood of projects to enter the space, many of which focus more on tokenomics as financial instruments than on creating compelling gameplay. This can lead to a saturation of average or poor-quality products, which dilutes the potential of web3 gaming as a whole. For developers like us, this means we need to be extra diligent in building games that prioritize long-term sustainability over short-term gains.
That said, the real challenge comes when scaling. Early-stage projects may not feel the weight of regulatory uncertainty, but as we grow, compliance becomes crucial. We’ve seen successful projects like Illuvium and Wilder Worlds partner with major brands like Samsung by undergoing rigorous legal due diligence. This shows that while the regulatory landscape might not be fully defined, aligning with established web2 companies and passing legal scrutiny is key to scaling effectively and gaining wider market acceptance.
Ultimately, the lack of clear regulations hasn’t stopped us from moving forward, but it has forced us to be proactive. We work closely with legal teams and focus on building compliant, sustainable models that can thrive in the long term. In this sense, navigating this gray area is just part of being in an emerging industry, and it’s something we’ve had to embrace as we push forward in web3 gaming.
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