Web3 move-to-earn game Web3 Move-to-Earn will block Chinese users from accessing its essential GPS and IP services starting July 15.
Popular move-to-earn game STEPN announced Thursday that it will stop offering IP and GPS-related services to mainland Chinese users, as required by authorities. The new ban will take effect on July 15.
What is the app about?
The Solana-based STEPN app is a mobile platform that rewards users for walking, jogging or running. Tracking users’ geographic location is a key feature that allows the platform to ascertain their level of participation.
Thus, to participate in the game, players must carry their phones while exercising and let their GPS be known to the platform.
In compliance with regulatory requirements – STEPN said via a tweet thread on Thursday – users whose IP and GPS addresses are from mainland China will not be able to use its service from July 15. The Web3 company has encouraged Chinese users to start managing in-app assets accordingly.
1/ 關於清查中國大陸帳戶的公告
尊敬的STEPN用戶：
為積極主動響應相關監管政策，STEPN將對軟體用戶進行清查，若發現中國大陸地區用戶，則STEPN將依據使用條款對其賬戶於2022年7月15日（UTC+8）24:00 停止提供GPS及IP位置服務。— STEPN | Public Beta Phase VI (@Stepnofficial) May 26, 2022
According to the law itself, only entities with special authorization from the State Council in China can perform surveying and mapping work within the country. In its Twitter post, STEPN made it clear that the team has never planned to start operations in China. Thus, to avoid violating local laws, the app will stop supporting users in China soon.
To earn rewards through the game, users have to first purchase virtual sneakers in the form of NFTs. The prices are denominated in SOL and BNB, so users have to connect the app to their crypto wallets. The thread did not specify what will happen to their in-app assets after the deadline.
The team clarified that it never launched any business or provided any means for people to download the app within the jurisdiction. Jerry H, the founder of STEPN, noted that Chinese users only account for 5% of the game’s total user base, suggesting that the ban would not significantly affect their business
Stepn aims to prove it is viable because it earns commissions from other blockchain companies that want to market their products or tokens to Stepn users, which can be accessed quickly through the move-to-earn concept, Rong said last month.
China has been cracking down on cryptocurrency-related activities for years, and the central bank’s statement on foreign cryptocurrency exchanges in September last year prompted major platforms such as Binance and Huobi to leave the country.
