Reading Time: 2 minutesThe Philippine police have warned against play-to-earn (P2E) blockchain games saying some may be scams
The law enforcers also cited a higher entry barrier as another reason why Filipinos should be cautious when playing these games
The authorities noted that the niche doesn’t comply with laws preventing money laundering, making it a potent field for malicious actors

The Philippine police, through its anti-cybercrime wing, have warned Filipinos against P2E blockchain games saying some are scams while others require a higher monetary allocation to join. The authorities also noted that the space doesn’t enforce rules meant to thwart criminal activities like money laundering, making it a breeding ground for entities with malicious intent. Other dangers outlined by the law enforcers include being lured into such games through fake rewards.

Game Developers can Secretly Withdraw User Funds

In the warning, the authorities said that malicious actors often scout for victims online before inviting them to play a dubious game that promises crypto rewards. 

The Philippine police added that the rewards in such games are non-existent as they’re only meant to capture the victim’s interest.  Victims are then requested to deposit funds to continue playing the game, funds that the malicious actors secretly withdraw without the player’s knowledge.

Apart from their funds falling into the wrong hands, the authorities said players on genuine web3 games can still lose their money due to the constantly fluctuating value of in-game items. 

Axie Infinity is an Example 

Regarding concerns of the high entry barrier involved to join some games, the Philippine police gave the example of popular web3 game Axie Infinity although it didn’t label it as a scam. Axie Infinity may have been cited as an example because Fillipinos at one time accounted for almost 50% of the game’s active players. 

The game’s engine, Ronin network, later encountered an exploit that siphoned over $500 million user funds although the game’s developer Sky Mavis reimbursed all affected users.

With the Philippine police warning Fillipinos against P2E games, it’s unclear whether the country’s government will enact laws targeting the web3 gaming space.

 

The post Philippine Police Warn Against P2E Web3 Games appeared first on FullyCrypto.

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Filed under: Bitcoin - @ August 20, 2023 7:16 am