For various reasons, domestic chain games have been criticized as “not real chain games.” For entrepreneurs who want to operate "authentic" chain games, operating chain games in Hong Kong has become an alternative. How to operate a blockchain game in compliance with regulations in Hong Kong? The first question that needs to be resolved is, are there any entry barriers to operating chain tours in Hong Kong?
Do Hong Kong chain games need a financial license?
Lawyer Mankiw believes that it is not necessary.
In terms of transaction scenarios, the scenarios that may involve financial transactions in blockchain games are the buying and selling of tokens, NFTs, and other virtual assets in the game. But in fact, the buying and selling of these virtual currencies or virtual assets does not occur in the built-in functions of chain games, but is completed through a centralized exchange (CEX) or a decentralized exchange (DEX). Therefore, the application for a financial license has little to do with the chain game itself .
In terms of regulatory logic, for the supervision of virtual currencies or virtual assets, the main regulatory authority in Hong Kong is the Securities and Futures Commission (SFC). The SFC’s No. 1 license, No. 4 license and the No. 4 license related to virtual assets disclosed by the SFC are Judging from the regulated activities and service scopes of the No. 7 license, the No. 9 license and the VASP license (see the table below), the regulatory scenarios are limited to financial transaction scenarios, and the regulatory purposes are the protection of investor rights and interests and the stability of financial order. Players of chain games are difficult to be recognized as investors in a general sense, and their scale and behavior of buying and selling game tokens are difficult to affect the financial order in a general sense. Therefore, even if a chain game embeds the trading function of virtual currency or virtual assets, its "small business" is unlikely to be targeted by the SFC.
What license does Hong Kong chain travel need?
To operate games in China, you generally need an Internet culture business license, a value-added telecommunications business license, and you need to apply for a game version number. To operate games in Hong Kong, are there similar licenses in China?
Do I need to apply for a service operator license?
Service operator licenses under Hong Kong's Telecommunications Ordinance are divided into three categories. Category 1 and Category 2 services are based on local voice telephone services, and Category 3 services are based on network value-added and mobile communication services.
However, under Hong Kong law, service operator licenses are usually related to companies that provide telecommunications services or Internet services. Online games are usually regarded as content providers rather than operators providing telecommunications or Internet services. Therefore, there is usually no need to apply for a service operator. business license.
Do I need to apply for a version number?
Unlike China, Hong Kong does not have a game license system, so there is no need to apply for a license .
What kind of license does gambling involve?
According to Hong Kong’s Gambling Ordinance, only licensed lotteries, gaming games or competitions are legal gambling activities. However, the current gambling-related entertainment licenses under Hong Kong law, such as prize-based entertainment game licenses and business promotion competition licenses, are aimed at Hong Kong’s existing traditional gambling structure, such as the Jockey Club. In short, gambling on chain games cannot be compliant by applying for a license because there is no license to apply for. Therefore, lawyer Mankiw suggests that even if you operate a chain game in Hong Kong, its gameplay should not involve gambling.
What else do you need to pay attention to when operating a chain tour in Hong Kong?
Do Know Your Customer (KYC). Whether it is for web2 games or web3 games, KYC is an important measure to ensure the compliance operation of the game platform and the security of user assets. The main reasons are as follows:
Protect minors: Verify player identity and protect minors from inappropriate game content or gambling activities.
Reduce legal liability: Game operators have legal responsibilities to ensure that users’ activities on the gaming platform are legal and compliant. If inappropriate behavior occurs, such as gambling or other illegal activities, project parties may be held legally responsible. KYC can help mitigate legal risks.
Cooperate with financial supervision. Cooperate with the supervision of the Hong Kong Monetary Authority (HKMA) to prevent money laundering, financing of terrorism and other illegal activities.
Mankiw lawyer advises
To sum up, although operating a blockchain game in Hong Kong does not require a financial license or a value-added telecommunications business license, or even be restricted by the game version number, you should still avoid gambling in gameplay and do KYC to ensure compliance. business .
