Banks need to keep a close eye on play-to-earn game transactions, says AMLC.

A customer plays a game on September 2, 2020, at a computer store in Queens City. – Philippine Star / Michael Works

The Anti-Money Laundering Council (AMLC) wants financial institutions to ensure the due diligence of customers, especially those that act as a payment channel for games earned from games such as Axis Infinity.

When Axis Infinity Not under the supervision of Bangko Sentral ng Pilipinas (BSP) itself and not covered by the “dirty money” watchdog, AMLC’s executive director Mel Georgie B. Resella emphasized that financial institutions are involved when players convert in-game tokens into fiat currency.

Such as the game Axis InfinityPlayers receive cryptocurrency in exchange for playing the game. Axis Infinity Players earn tokens known as Smooth Profit Potion (SLP).

“Payment channels used for SLP tokens used in the game may include banks and electronic money issuers (EMIs). The report (STR) is needed, “Mr Resella said in a Viber message.

“The funds that go through them (through the purchase or sale of such tokens) for potential links to dirty money, as facilitators of payments and settlement of these covered persons, should be closely monitored and immediately. fiRelevant STRs if appropriate, ”he added.

Connected to cryptocurrencies worth about $ 600 million Axis Infinity Ronin is stolen from the network, a blockchain network that allows users to transfer crypto to games. It is known to be one of the largest cryptocurrency hasts on record.

The U.S. Federal Bureau of Investigation said last week that its investigation found that both the Lazarus Group, affiliated with North Korea, and the APT38 were behind cybercrime. The Lazarus Group was also involved in hacking the central bank of Bangladesh in 2016.

Meanwhile, Swarup Gupta, an industry manager at the Economist Intelligence Unit, said the cyber-attack showed how there were still gaps in ensuring decentralization of such platforms.

“The Ethereum sidechain, the small number of valid nodes for Ronin and the smaller number required to approve a transaction, show how such platforms fail to deliver layers. Necessary decentralization to ensure suffiThe cient level of cyber security, “Mr Gupta said in an e-mail.

Sky Mavis, which manages Axis InfinityEarlier it was said that about 35% of the game is traffic comes from the Philippines. The company says it has raised $ 150 million in funds to be used to repay players.ffEcted by robbery.

Despite warnings from regulators about cryptocurrency risks, Mr Gupta said gamers remained “largely uncertain”.

He had previously said that Filipinos were finding new sources of income in the wake of the epidemic, which increased interest in games to earn money from the game.

“The authorities should liaise with the country’s gaming guilds and coordinate with them to educate them about the risks involved in gaming activity earned from the game,” Mr Gupta said.

“Restrictions on gamers’ transactions should also be considered when converting them into Fiat currency because it is an area that is within the jurisdiction of the government,” he added.

BSP Governor Benjamin E. Diocono previously stated that they are constantly monitoring crypto-related activities that are used in online games. He said they were discussing appropriate procedures with other regulators Axis Infinity And other gaming platforms.

The Philippines was placed under additional scrutiny as it was added to the Financial Action Task Force’s “gray list” in June 2021. It needs to prove that it has implemented strict restrictions on money laundering and terrorist financing activities.

The government hopes to get off the gray list in January 2023 or earlier. Loose Wendy T. Nobel

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