A Hong Kong legislator told the media that there is no need for a regulation for gaming coins. The legislator noted that as long as the games do not contain securities or futures, Hong Kong is open to web3 development. Gaming coins Internet Computer, ApeCoin, The Sandbox, Immutable X and Gala started rallying on Wednesday. Crypto analyst Ekta Mourya thinks there may be more to these coins.
Gaming coins rally amid pressure from US regulators
Prices of some gaming tokens soared on Wednesday after a Hong Kong lawmaker linked to the web3 ecosystem said these assets are unlikely to face regulation in the city unless they include securities or futures trading.
Pressure from the US Securities and Exchange Commission on cryptocurrencies has caused bloodbath. Meanwhile, the leading crypto Bitcoin, Ethereum and some altcoins managed to escape the pressure. On the other hand, Hong Kong’s stance on cryptocurrencies supports the development of the crypto ecosystem. In a recent tweet, Colin Wu, a Chinese reporter, reported to his 290,000 followers that a Hong Kong legislator told the media that there may be no need for regulation of gaming coins, apart from exchanges and virtual asset management. In this context, Colin Wu shared:
A Hong Kong legislator told the media that he did not specify that Hong Kong should be regulated, except for exchanges and virtual asset management. For example, game coins will not be issued unless they contain securities and futures. Also, Hong Kong will be relatively free to develop Web3.
A Hong Kong legislator told the media that apart from exchanges and virtual asset management, Hong Kong has not stated that it needs to be regulated; for example, game tokens, as long as they do not involve securities and futures, will not be regulated, and Hong Kong is… pic.twitter.com/WxpsBEZZrZ
— Wu Blockchain (@WuBlockchain) June 7, 2023
According to the reporter, Hong Kong is relatively open to such protocols and projects, as long as the web3 development does not involve securities and futures. Meanwhile, US regulators and Hong Kong legislator take the opposite stance. According to experts, this indicates that the development will shift from the USA to China in the long run.
ICP, APE, SAND, IMX and GALA start to recover
As you follow on Kriptokoin.com, the SEC has sued Binance and Coinbase on various charges. These lawsuits rocked the market as Binance and Coinbase are the world’s largest crypto exchanges. In particular, altcoins, whose names were mentioned in the ‘securities’ list in the case file, witnessed deep losses. However, gaming coins have outperformed the market relatively today. These include Internet Computer (ICP), ApeCoin (APE), The Sandbox (SAND), Immutable X (IMX) and Gala (GALA).
Gaming tokens in the crypto ecosystemGaming tokens ICP, SAND, IMX and GALA have managed to recover their losses in the last 24 hours. According to the analyst, further recovery is possible in these gaming tokens in the short term. For this, Hong Kong’s stance on Web3 and game coins needs to be clarified.
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