The U.S. Consumer Financial Protection Bureau (CFPB) is closely monitoring online gaming activities, particularly financial transactions occurring on gaming platforms, as outlined in a recent report. The agency emphasizes its mission to safeguard consumers in financial markets, wherever those markets may exist.
According to the CFPB, popular video games today often involve players earning or purchasing in-game currency, essentially converting traditional fiat money into virtual currencies. These in-game currencies are then utilized to acquire various goods and services within the game environment.
The agency categorizes these financial transactions in gaming as banking in video games and virtual worlds, considering them comparable to banks and payment services. Whether it involves purchasing virtual assets, obtaining special powers, or participating in play-to-earn games, the CFPB deems all such activities as integral parts of the gaming economy.
As interest in crypto gaming rises, the CFPB has ramped up its scrutiny of potential risks associated with these digital platforms. Instances of scams, theft, and criminal activities in the gaming sphere have prompted the agency to focus on ensuring adequate consumer protection measures are in place.
Notably, the report highlights the trading of in-game items and currencies for cryptocurrencies such as Bitcoin, as well as the emergence of blockchain-based games and platforms like Axie Infinity, Decentraland, and Sandbox. The CFPB also mentions concerns regarding DeFi-lending platforms that enable players to leverage their in-game assets for loans.
Looking ahead, the CFPB plans to collaborate with other agencies to maintain oversight of the evolving landscape of crypto gaming. With a particular focus on companies handling sensitive consumer data, especially when such data is harvested and monetized without users’ explicit consent, the agency aims to uphold consumer rights and ensure a fair gaming environment.
