Non-fungible token (NFT) game Stepn will ban users in mainland China to comply with Chinese regulatory requirements.
Rumours that the company will be forced to leave mainland China have added to the uncertainty. STEPN is a popular “money money” game based on Solana and BNB Chain, created by two Chinese immigrants now living in Australia.
On July 15th, Stepn will clear all accounts located in mainland China for local compliance reasons. Before that, the platform recommends that users who plan to live in mainland China for a long time can sell assets on the platform as much as possible.
2/ If you expect to log in and use your account from a GPS or IP location in the region for a long period of time, we encourage you to make your own decisions about the handling of in-app assets. During this period, more details will be notified to users through official social media announcements, emails, in-app alerts, etc.
— Steps | Public Beta Phase IV (@Stepnofficial) May 26, 2022
The news sent shockwaves across markets, with investors dumping assets. When Pandaily launched Stepn in April, the base price for “sneakers” on the platform was around 13 SOL, but it has since dropped to just 8 SOL. Additionally, the price of STEPN’s utility token, GMT, has plunged by more than 30% in the past 24 hours, most of which occurred after the announcement.
Following the announcement, company founder Jerry noted that mainland Chinese users account for 5 percent of the platform’s overall user base, suggesting the company’s exit from the market would not have a significant impact on its financial success. According to Stepn’s official Twitter account, daily active users rose to over 500,000 in May, up from 300,000 in April.
Rong said last month that Stepn aims to prove it works, as it earns commissions from other blockchain companies that want to market their goods or tokens to Stepn’s users, who can transfer their income through the Concept quick access.
China has been cracking down on cryptocurrency-related activity for years, and the central bank’s statement last September about foreign cryptocurrency exchanges prompted major platforms such as Binance and Huobi to leave the country.