- GameStop announces it will end its crypto wallet services starting from November, invoking ‘regulatory uncertainty.’
- The decision could prove significant for blockchain-based video gaming, which had hoped to gain mainstream adoption with backing from major players like GameStop.
Video gaming giant, GameStop, known for its retail gaming solutions, has raised eyebrows across the crypto world with the unexpected announcement of the termination of its cryptocurrency wallet services. This move comes as a potential hurdle for the burgeoning sector of blockchain-anchored video gaming, which has been making strides towards mainstream adoption.
According to a statement on the company’s website, the decision stems from the ‘regulatory uncertainty’ plaguing the crypto landscape.
“Due to the regulatory uncertainty of the crypto space, GameStop has decided to remove its iOS and Chrome Extension wallets from the market,”
the company clarified. The termination of services will commence from November 1.
Navigating Regulatory Waves: The GameStop Example
GameStop, a U.S. based company, had previously drawn attention with its announcement of venturing into the NFT marketplace and the launch of its crypto wallet. The wallet was aimed at facilitating customers with crypto and NFT storage, as well as the use of decentralized applications on the Ethereum blockchain. Given the importance of such services for web3 games like Gods Unchained and Illuvium, which operate on Immutable X, a Layer-2 Ethereum solution, GameStop’s foray into crypto had been welcomed with enthusiasm.
Unfortunately, the world of cryptocurrencies, inclusive of exchanges and the assets themselves, has been subject to intensified regulatory scrutiny in the U.S, especially in the aftermath of the FTX collapse. One focal point of uncertainty is ether’s legal classification. Federal regulators have traditionally treated the cryptocurrency akin to a commodity, thereby exempting it from certain financial disclosure requirements imposed on security investments.
However, a change in perspective seems possible as Securities and Exchange Commission Chair, Gary Gensler, hints at the potential consideration of Ethereum token as a security. This could expose core Ethereum developers to enforcement action over unregistered securities offerings. Notably, he has not publicly disclosed his specific stance on the token.
Further adding to the complexity, the New York attorney general claimed in a legal action against trading firm KuCoin that ether is an unregistered security. This layered regulatory scenario undeniably presents a challenge to companies like GameStop venturing into the crypto and blockchain space.