Gaming tokens could face setbacks after the US securities regulator issued a Wells notice to NFT platform CyberKongz. The SEC raised concerns that an ERC-20 token in tandem with a blockchain game cannot be issued without first being registered as a security. CyberKongz said this stance would have “major implications” for the Web3 gaming industry and that it would “defend against this stance for the wider space.” A Wells notice is a formal letter from the SEC informing an entity that the regulator is considering an enforcement action after completing a preliminary investigation.
CyberKongz will have 30 days to file a response.
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