The authorities in South Korea have issued statements to Apple and Google regarding the removal of pay-to-earn games from their stores. According to the leadership, “play and earn” games violate local legislation. The core issue is that, by law, it is prohibited to win more than $8.42. Such are the restrictions.
South Korea Might Lose More – This Is Practice
Understanding the country’s leadership is possible. If it’s prohibited, then it must be removed. However, these games attract players because they can earn more than they invest. It’s like a financial instrument that helps people earn real money. Naturally, they bypass taxes. The South Korean government monitors all applications and enforces bans. Now, tired of catching hundreds of games, they decided to ban them at the store level for the South Korean region.
But, the South Korean authorities are very short-sighted guys. Trying to protect their citizens from income on cryptocurrencies, they might hurt their country’s economy badly. After all, there are excellent brands like Samsung and LG, whose products are in high demand abroad. And this is a great tool for Apple and Google to punish South Korea.
If the authorities of the Asian country do not calm down and decide to sue the industry giants, the situation may turn against them. Just one company releasing negative news about Samsung and LG brands can cause their stocks to drop immediately. Meanwhile, buyers worldwide will prefer other brands. Because Google (or Apple) is a legend. And Korean brands are insignificant.
South Korea could suffer a severe blow in the form of an economic downturn. And it is approaching this rapidly. Perhaps it would be easier to legalize pay-to-earn games and develop a system for tracking cryptocurrency income. Time will tell. The trade war with China has already shown Americans what bans on imports lead to. South Korea is next.
