Web3 Legal Popularization | If the chain game GameFi goes online without a game version number, will it constitute an illegal business crime?

Author: Shao Shiwei

Currently, the Metaverse market is in a period of rapid development. As a combination of games and decentralized finance (DeFi), the blockchain game GameFi has high market potential with blockchain as the underlying technology. Domestic chain travel projects such as Dragon Island and Sebol have also attracted the attention of many players.

NFT has given value attributes to chain games, and many domestic digital collection platforms (such as HOTDOG, Shiba Shuzang, etc.) have also begun to lay out the chain game track.

However, in our country, the launch of an online game must be approved by the State Press and Publication Administration and obtain a publication number (version number). Due to policy reasons, game version numbers are strictly controlled. In 2018, regulators even suspended the issuance of game version numbers. [1] . After the resumption of approval after a lapse of 9 months, the number of online game version approvals began to drop off a cliff.

**At present, there is no chain game platform in my country that has obtained a version number. **

In this context, while some data storage project parties hope to transform into chain games, they are also worried about not being able to obtain the game version number. Are there any relevant legal risks? **

Let’s take a look at a piece of news:

It can be seen that ** launched the game without a version number or package number, which is suspected of constituting the crime of illegal business operations. **

However, the author believes that the “crime of illegal business operations” is a pocket crime in our country, and there is great controversy over the application of this crime. Chain gaming platforms that operate online without obtaining a game version number should not be convicted of this crime.

The following is divided into 2 points to explain:

According to the definition of illegal business crime in the criminal law, it can be seen that there are two basic conditions for constituting this crime, 1. Violation of national regulations, 2. Disruption of market order.

Article 225 of the “Criminal Law of the People’s Republic of China” stipulates the crime of illegal business operations: Violating national regulations, committing one of the following illegal business activities, disrupting market order, and the circumstances are serious…

Reason 1: Launching a chain game project without a version number does not constitute a violation of national regulations

According to my country’s criminal law, “state regulations” refer to laws and decisions designated by the National People’s Congress and its Standing Committee, administrative regulations formulated by the State Council, prescribed administrative measures, and issued decisions and orders.

It is believed that online chain games without a version number are involved in criminal punishment, and the corresponding basis is the “Online Publishing Service Management Regulations”, but the effectiveness level of this regulation belongs to departmental regulations. Although the effectiveness level of the “Publication Administration Regulations” on which this provision is based is administrative regulations, the application of the “Publication Administration Regulations” is limited to “electronic publications” and so on. However, there is no clear regulation on whether online games fall into the category of “electronic publications”. According to the “Regulations on the Administration of Publication of Electronic Publications”, electronic publications are generally a tangible carrier [2] 。

Therefore, the online operation of chain games without a version number does not violate national regulations.

Article 51 of the “Regulations on the Administration of Online Publishing Services” who engages in online publishing services without authorization, or publishes online games (including online games authorized by overseas copyright holders) without authorization, shall be punished according to Article 61 of the “Regulations on the Administration of Publications” Article 19 of the “Measures for the Administration of Internet Information Services” stipulates that…whoever has violated criminal law shall be held criminally responsible in accordance with the law. Article 2 of the “Publication Management Regulations (2020 Revision)”… The publications referred to in these regulations refer to newspapers, periodicals, books, audio and video products, electronic publications, etc.

Reason 2: Launching a chain game project without a version number does not constitute “disrupting the market order”

According to the provisions of the Criminal Law, the crime of illegal business operations must reach a level that seriously disrupts market order, and includes such behaviors as operating national monopoly and restricted items; buying and selling import and export licenses and other approval documents; illegally engaging in fund payment and settlement business, etc.

One of the characteristics of criminal law is the “punishability of punishment.” According to the “Online Publishing Service Management Regulations”, operators can be fined up to 10 times the illegal business volume, close the website, and confiscate illegal gains and a series of punitive measures.

In the case where the criminal law does not expressly stipulate that the lack of qualifications and licenses for chain games constitutes “serious disruption of market order” and there are corresponding administrative penalties, according to the modest nature of the criminal law, criminal means should no longer be used to punish.

risk warning

Even if a chain game project launched without a version number does not constitute an illegal business crime, it still needs to pay attention to other aspects of compliance during operation. For example, whether there is suspicion of infringement of copyright of others, involvement in pornography, violence, or violation of core socialist values, etc. If the circumstances are serious enough to meet the standards for filing other criminal charges, there is still a certain risk.

[1] On March 29, 2018, the former State Administration of Press, Publication, Radio, Film and Television issued the “Notice on Important Matters for Game Application and Approval”, stating that due to organizational reforms, the issuance of all game version numbers has been completely suspended.

[2] Article 2 of the “Regulations on the Administration of Publication of Electronic Publications” states… The term “electronic publications” as mentioned in these Regulations refers to the editing and processing of information with intellectual and ideological content in the form of digital codes and storage in fixed physical forms of magnetic or optical media. , electronic and other media, mass media used through electronic reading, display, playback equipment, including read-only optical discs (CD-ROM, DVD-ROM, etc.), write-once optical discs (CD-R, DVD-R, etc.) ), rewritable optical disks (CD-RW, DVD-RW, etc.), floppy disks, hard disks, integrated circuit cards, etc., and other media forms recognized by the General Administration of Press and Publication.