Regulatory Challenges in GameFi and Blockchain-Based Gambling

The rate at which the Blockchain technology is penetrating every corner of the digital world is no longer a news and the truth is it is just a matter of time before it gets better and better. In my recent post for the past few days, I have really be focusing on the aspect of gaming because it is something to actually look out for. For so long we have been limited in the gaming industry because the gaming world is built on the centralised system but not anyone thanks to the innovation of the Blockchain technology.

Recently there have been massive attention that is rising in the aspect of GameFi. For many of us, we might be hearing about GameFi for the first time. GameFi includes gaming and also Decentralised Finance. What GameFi offer is different from the usual traditional gaming system we have been used to for many years. With GameFi, it created a system whereby people can earn money or reward even as they are playing the game. So with that, it created a system whereby they enjoy the game in the aspect of entertainment but at the same time also earn rewards from it.

Even with GameFi, there are a whole lot of challenges it is currently facing and that is majorly due to the way it is been runned. It is facing issue because of the regulatory issues attached to the GameFi system of running. The first id the legal ambiguity and the jurisdictional issues that it is constantly facing. Most of the time, a lot of issues surrounding GameFi are majorly in the aspect of lack of clarity because there is no specific law backing up the GameFi system and the Blockchain based gambling generally.

The other issue affecting it is the aspect of the consumer protection and the security concerns. Well I will say that is generally aspect of the gambling system. Your funds is not protected because like they always say, gambling is a game of luck. And the fact that Blockchain technology operates using the Decentralised nature that comes with lot of benefits like the transparency and also the Immutability but also it comes with issues like fraud and also for the security issues. There is a high risk of scams and hacks that also surround GameFi and Blockchain based gambling.

Not only that, there is also the issue of money laundering and financial crimes that also surround the GameFi world and generally the Blockchain based gambling. This is also a general issue associated with gambling in every aspect of the world. Every Blockchain based gambling platforms and generally GameFi. Even though they have the potential to offer returns and massive profit for the gamers, it also is prone to a lot of criminal activities and illicit activities and till now, there is no proper rigid structure in place to regulate the money laundering system.

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