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The NFT iGaming industry is still relatively new, and as such, there are not a lot of established
regulations. In 2022, however, there was a sudden surge in the popularity of NFT iGaming, and
as a result, regulators began to take notice.
They started to change the regulations for the industry frequently in order to keep up with the
rapidly changing landscape. Some of the changes were designed to protect consumers from
fraudulent activities, while others were meant to encourage innovation and competition.
The most notable example is the SEC’s decision to regulate NFTs as securities, which has led
to a number of project delays and cancellations. In addition, recent changes to tax laws in the
US and elsewhere have made it more difficult for NFT projects to operate profitably. All these
influences caused a huge slowdown in the industry.
Whereas the NFT business is at its lowest, crypto gambling becomes more and more
successful, especially when it comes to legislation. Global regulators have huge support for this
industry. So, more and more people want to play with cryptocurrencies in safe online casinos as
it is a more convenient experience for them. One great example is Stake online casino which is
already a sponsor of UFC and additionally has the highest global license in safety.
In this article, we will talk more about these negative changes and outline the key reasons why
regulations are against NFT iGaming projects.
The Main Factors That Caused The Ban Of NFT iGaming Projects
There are a few reasons why regulators may need to ban NFT gaming projects. First, NFTs can
be used to scam people by promising players in-game items that don’t actually exist. Second,
NFTs lead to gamers spending more money on transaction fees than they would on actual game
items. Finally, some NFTs have been created with malicious code that could harm users’
computers.
NFT malicious code can damage users’ computers by corrupting or deleting data, as well as
causing system instability. Users can avoid this by ensuring that their computer is up to date
with the latest security patches, using a reliable antivirus program, and avoiding opening email
attachments from unknown sources.
On the other hand, when a user buys an NFT, they are actually buying a digital asset that is
stored on the blockchain. So owners can do whatever they please. In contrast, when a user
buys a traditional game item, they are only buying access to use that item in-game. With an
NFT, however, the user has full control over their purchase and can resell or trade it as they see
fit. Consequently, users are more likely to spend more money on NFTs than traditional game
items since they offer greater value and flexibility.
These reasons were not the primary ones. To say it more correctly, regulators were forced to
ban NFT iGaming projects because of safety issues. The industry faces a huge problem of
non-transparency. There have been several cases of fraud and scams in the industry, which has
led to a loss of confidence among investors. Additionally, there is a lack of regulation in the
industry, which makes it difficult for investors to protect their interests.
The reason why it is difficult for NFT iGaming projects to provide guaranteed safety from scams
is that the industry is still relatively new and there are not a lot of regulations in place.
Additionally, NFTs can be easily faked or duplicated, which makes it difficult to guarantee their
authenticity.
The Probable Results Of The Projects Ban
If regulators were to completely ban NFT iGaming projects, it would have a negative impact on
the industry. This is because NFT gaming projects are a new and innovative way for developers
to create games that can be played by anyone with an internet connection. Without this
technology, game developers would be forced to rely on traditional methods of game
development, which are often more expensive and time-consuming. Additionally, banning NFT
gaming projects would also stifle innovation in the industry as a whole.
The NFT industry is largely in support of the ban on their iGaming projects. They claim that new
frameworks will effectively work to solve cheating problems and guarantee the protection of
integrity. There are some concerns about the impact on competition, but overall they believe that
this is a positive step for the industry.
So, to conclude most parts of the NFT industry players have been vocal in their opposition to
the recent ban on iGaming projects. While some have suggested that the solution is to simply
comply with the new regulations, others believe that this would be a death knell for the industry.
Some have proposed creating workarounds that would allow for NFTs to be used in gaming,
while others believe that the only way to save the industry is to lobby against the ban. No matter
what solution is ultimately chosen, it is clear that the NFT industry will need to come together
and make a decision soon if they want to keep their place in the gaming world.
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Head of Marketing
Kontomatik
Member since
18 Aug 2015
Location
Warsaw
Blog posts
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