Despite the bullishness of major cryptocurrencies, including Bitcoin, coins issued by South Korean game companies (Wimix, Bora, and MVX) are performing poorly. Wimix is down 75% since its relisting, while BORA and MVX are down more than 90% from their peaks.

The main reason for the poor performance of gaming coins is the government’s regulation of Play to Earn (P2E) games. The Game Product Management Committee has refused to classify P2E games because it believes that they are speculative, and in a related lawsuit, the first court ruled to ban P2E games.

The government and the National Assembly have maintained a cautious stance on legalizing P2E. The Ministry of Culture, Sports, and Tourism has stated that it will discuss legalizing P2E after the legal framework for virtual assets is stabilized, and the National Assembly is also working on revising the Game Industry Act, but has excluded P2E deregulation. This has raised concerns that the domestic game industry could fall behind in the global P2E market.

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