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Legal Review Opinion on Domestic P2E Service for Overseas Token Projects

Legal Review Opinion on Domestic P2E Service for Overseas Token Projects

Client Information
Corporate / Party
 
Case Details

Decent Law Firm was commissioned by an overseas cryptocurrency foundation to provide a legal review opinion on its token project, particularly regarding its Play-to-Earn (P2E) services in South Korea. The token project aimed to list its tokens on domestic cryptocurrency exchanges, necessitating a legal evaluation of the token’s securities classification and potential regulatory concerns related to P2E services under South Korean law.

The review focused on whether the P2E service might violate local regulations and how such risks could impact the token’s listing process.

Decent's Strategy
Through its comprehensive analysis, Decent Law Firm identified potential risks of the P2E service violating the prohibition against gambling-like activities under South Korea's Game Industry Promotion Act. However, the analysis also concluded that these concerns might not directly affect the token’s eligibility for listing.

To mitigate uncertainties and regulatory challenges, Decent recommended the following measures:

1. Restrict Domestic P2E Services
Decent suggested limiting the availability of P2E services in South Korea, instead providing a general version of the service that avoids regulatory pitfalls.

2. Clarify in the Whitepaper
The team advised clearly stating in the project’s whitepaper that P2E services would not be offered domestically. It was recommended to emphasize that only non-gambling general services would be available in South Korea, reducing regulatory risks.
Outcome
"Legal Review Opinion for Token Listing and P2E Services Provided"

Decent Law Firm delivered a detailed legal opinion that evaluated both the domestic legal risks and the prospects for exchange listing.

P2E services are gaining significant traction within the global gaming and blockchain industries, but their implementation must comply with local laws. Specifically, South Korea's regulations regarding "provision of rewards" and the associated risks of promoting gambling-like elements require careful attention. Decent’s expertise ensured that the client’s project aligned with regulatory standards while optimizing its chances for a successful token listing.
#P2E # OverseasFoundation # CryptocurrencyExchange # ListingOpinionLetter # P2EGame

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