South Korean government asks Apple and Google to remove P2E games from their app stores

The South Korean government has moved to block the release of new play-to-earn (P2E) games and demand that existing P2E games be removed from Google Play and Apple's App Store.

P2E games have become popular in the cryptocurrency industry. In order to play games and receive in-game rewards, players typically must first purchase game items that are non-fungible tokens. However, gaming bonuses of more than a few dollars are prohibited in South Korea.

Yesterday, the Game Management Committee (GMC) of South Korea's Ministry of Culture, Sports and Tourism asked major mobile app markets to ban any games that require in-app purchases before they can be played.

To combat what it sees as the proliferation of speculative money-making schemes, South Korea's GMC has made it nearly impossible for P2E game developers to appear in the most popular mobile app stores.

While the government's attempt to curb the growth of P2E games by directly entering the app market is a new development, game developers in South Korea have been facing court battles since April to keep their P2E games sold in domestic app stores. The main problem is that some gaming apps don't get the age ratings needed to be available on the app store.

An official at South Korea's GMC said the committee is simply following a Supreme Court case that prohibits P2E games from being age-rated and listed. In a statement on December 28, the official said:

"Banning age ratings for P2E games is justified under current law because in-game cash prizes can be considered bonuses."

In South Korea, winnings cannot exceed 10,000 won ($8.42) per playthrough.

P2E game and NFT marketplace Five Stars for Klaytn was initially banned from South Korean app stores due to lack of ratings, but the team behind the game won a ban in June and the game was released. A final decision on the game's legal status is expected to set a legal precedent for other P2E games such as Infinite Breakthrough Three Kingdoms Reverse.

South Korea's GMC's stance has a negative impact on all P2E gaming apps, including suites of apps related to two of the most popular games out there: Axie Infinity and Splinterlands.

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