There are currently no formal regulations governing GameFi because it is unclear who should control it, primarily because of its distinctive characteristics, business model, and overlap with already-existing regulatory frameworks.
I recently became intrigued with GameFi after learning about Coin Fantasy and Splinterlands.
According to what I've read, there are various regulatory issues with GameFi:
A "majority" of cryptocurrencies will be classified as securities under the US legislation that has just been drafted, the Responsible Financial Innovation Act.
According to the proposed draught, every token purchased with "an expectation of profit" would probably be categorized as a security, as will all initiatives that encourage the creation of liquidity pools, which will have an effect on both GameFi and the DeFi ecosystem.
Similar to other countries, Korea's Gaming Industry Promotion Act specifically forbids the conversion of gaming products into cash or the middleman of such conversion or the repurchasing of tangible and intangible results, which indirectly restricts the spread and expansion of play-to-earn games in the nation.
The same regulations also regard any marketing speculation through the use of free gifts and speculative acts through the use of game products to be banned.
Could GameFi members be asked to pay taxes when they convert or transfer their tokens, receive in-game rewards, or make in-app purchases?
Source: https://www.reddit.com/r/NFTGames/comments/12ukwxb/there_are_no_formal_regulations_governing_gamefi/
