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Epic Games ‘definitely won’t’ follow Minecraft NFT ban

Epic Games CEO Tim Sweeney has said that the firm will not ban NFTs, as devs “should be free to decide how to build their games.”

Epic Games founder and CEO Tim Sweeney says his firm “definitely won’t” follow Minecraft's developers in banning non-fungible tokens (NFTs).

As previously reported, Minecraft developers Mojang Studios banned NFT integrations on July 20 as it believes the speculative aspect of NFTs, along with scarcity and risks of exclusion and scams supposedly associated with NFTs being against the game’s principles.

The move was seen as highly controversial in the NFT community, while it has been met with praise by the cohort of crypto-skeptic gamers.

Sweeney’s company is the creators of the widely successful battle royal game Fortnite, which is also seen as a Metaverse platform. While Epic Games isn’t necessarily pro-crypto or NFTs, the CEO said the firm isn’t looking to enforce any views on the subject on its users:

“Developers should be free to decide how to build their games, and you are free to decide whether to play them. I believe stores and operating system makers shouldn’t interfere by forcing their views onto others. We definitely won’t.”

In response to the post, Twitter user @Low5ive asked Sweeney Epic Games’ policy on prohibiting “hateful/discriminatory content” differs from this. In response, Sweeney suggested that Epic Games does make “editorial” judgements, but NFTs don’t currently fall under them.

“A store could choose to make no such judgments and host anything that's legal, or choose to draw the line at mainstream acceptable norms as we do, or accept only games that conform to the owner's personal beliefs,” he said.

The NFT ban by Mojang Studios has left one particular project dubbed “NFT Worlds” with a major problem to solve, given that it was built on one of Minecraft’s open source servers.

Related: Delphi Digital: How to get gamers to accept the integration of NFTs

The community driven play-to-earn (P2E) platform has an entire crypto and NFT ecosystem built around it, with its NFTs generating 51,000 Ether (ETH), or $80.8 million worth of trading volume to date. However, since the news dropped, the floor price of its NFTs has dropped from 3.33 ETH to 1.01 ETH at the time of writing, while its native token WRLD has plunged by 55% within that time frame.

After the Mojang announcement, the NFT Worlds team stated it is now “brainstorming solutions” on how to move forward. The team mentioned that it is working to get in contact with Minecraft to see if a possible solution can be found, otherwise a pivot to a “Minecraft-like game engine” or GameFi platform has been outlined as possible options.

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China’s WeChat bans crypto and NFT-related accounts

The policy also covers secondary NFT trading as the firm notes that “accounts that provide services or content related to the secondary transaction of digital collections shall also be dealt with.”

The top social media platform in China, WeChat, has updated its policies to ban accounts that provide access to crypto or NFT-related services. 

Under the new guidelines, accounts involved with the issuance, trading, and financing of crypto and NFTs will be either restricted or banned and will fall under the “illegal business” category.

The policy also covers secondary NFT trading, with the firm noting that “accounts that provide services or content related to the secondary transaction of digital collections shall also be dealt with in accordance with this article.”

The move was highlighted by Hong Kong-based crypto news reporter Wu Blockchain (Colin Wu) on June 20, as he pointed out the significance of the action given that WeChat has more than 1.1 billion daily users in China.

In terms of punishments, the new policy states that “once such violations are discovered, the WeChat public platform will, according to the severity of the violations, order the violating official accounts to rectify within a time limit and restrict some functions of the account until the permanent account is banned.”

The Chinese government rolled out a phased ban on the local crypto sector between May and September last year. However, given the timing of the latest policy update on WeChat, it could suggest the platform has been letting some crypto activity go unnoticed since then.

Furthermore, there is still a regulatory gray area in the country concerning NFTs as the assets can be purchased in fiat. Still, companies and platforms generally bar secondary trading to avoid potential compliance issues over the financialization of the tech.

In general, officials have frowned upon NFTs, with the China Banking Association, the China Internet Finance Association, and the Securities Association of China issuing a joint statement in April warning the public about the “hidden risks” of investing in the assets.

Related: Christie’s NFT expert to lead CryptoPunks, fake heiress launches NFT collection

Popular platforms such as WeChat and Ant group-owned WhaleTalk have been distancing themselves from the tech since March after they both reportedly began removing or restricting NFT platforms from their networks over a lack of regulatory clarity and fear of a crackdown from Beijing.

Despite this, a local media report from June 16 highlighted data showing the number of digital collectible platforms in China has grown to over 500, a 5X increase since February 2022.

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