The Philippine National Police Anti-Cybercrime Group (PNP ACG) has recently brought light onto the potential pitfalls associated with blockchain gaming. In an era where non-fungible tokens (NFTs) form the backbone of play-to-earn models employed by companies like Axie Infinity, the group asserts that such systems can lend themselves to exploitation by opportunistic cybercriminals.
Investments in NFTs and online gaming can seemingly translate into large financial rewards. Custom gaming apps are being used to entice gamers with towering prizes, proportional to their investments. However, are these too-good-to-be-true deals perhaps laying the groundwork for crypto theft?
Most popular play-to-earn models typically require gamers to purchase at least three NFTs, which can sum up to a substantial $300. Aided by the apparent promise of high returns, these games lure many towards making significant commitments, often without prior research or awareness of blockchain risks involved.
While the PNP ACG agreed that blockchain gaming, in itself, promises tremendous potential due to its rewarding structure and underpinning technology, it warns about the probable risks linked to market fraudsters and price volatility. “Just because a game’s underlying blockchain is secure does not mean its engine or marketplace is secure,” the department’s statement read.
Another major concern raised is the non-adherence to Anti-Money Laundering (AML) Regulations by many forms of blockchain gaming. This compliance gap leaves the country exposed to nefarious activities, contradicting the global push towards tighter regulatory norms.
The PNG recommends thorough research before investing in digital assets, using authentic exchanges and wallets for fund storage, and vigilance against bad actors offering disproportionate rewards. Since the crypto universe is relatively new, there are plenty of untested waters that can be exploited by hackers and scam artists.
Interestingly, the country’s Department of Information and Communications Technology (DICT) recently collaborated with the Blockchain Council of the Philippines to drive the adoption of blockchain technology. Emphasizing its utility, Emmy Lou Versoza-Delfin, the Director at the DICT, shared that blockchain’s widespread adoption enhances the public good. Yet, this digital advancement brings with it an imperative duty – to shield its users from underlying risks and to ensure their digital safety alongside.
Source: Cryptonews
