Spain looks to tweak gambling law to include NFTs and loot boxes
Minister for Consumer Affairs Alberto Garzón sets sights on tackling gambling-related verticals following crackdown on advertising
Spain’s Ministry of Consumer Affairs has announced it is doing “extensive research” into the prevalence of play-to-earn games (P2E) and loot boxes following its concerted efforts to regulate the gambling industry in the Iberian nation.
A public consultation was launched in March 2021 seeking guidance on how to modify the gaming law with loot boxes in mind.
In November, Minister for Consumer Affairs Alberto Garzón highlighted four types of loot boxes that could cause potential gambling-related harm, but conceded that unless a change in legislation came into effect he could do little to prevent this.
With the loot box conversation rumbling in the background the emergence of P2E games has become a topic of conversation.
P2E games rely on blockchain technology and enable players to earn cryptocurrencies or crypto assets based on in game activity. This could be in the form of weapons or land in certain games and each item will be unique and non-replicable, in effect NFTs.
P2E games are becoming increasingly popular mirroring the rise of NFTs and sources within the Spanish Ministry of Consumer Affairs revealed to Business Insider Spain that “very exhaustive monitoring of this whole series of phenomena” is being carried out.
The move from the Ministry of Consumer Affairs follows a severe crackdown on gambling advertising in the country, which outlawed sports sponsorships and reduce the advertising window to the early hours of the morning.
The same source added: “Work is being done on a modification of the Gambling Regulation Law, but it is still early to anticipate the details on the formulas chosen to incorporate this type of element into the Spanish legal system.
“It must be taken into account that they are very different products from each other and that there are many sectors that will be affected by this regulation.”
On Monday, Spain’s National Securities Market Commission (CNMV), the government agency that regulates securities markets, clamped down on unregulated cryptocurrency investments stating the following needs to be mentioned in all adverts: “Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.”