Mythical Games CEO, John Linden, recently spoke out about the company’s conservative stance on cryptocurrency and explained that it was due to regulatory uncertainty in the United States.
Linden stressed that while he believes in the potential of cryptocurrency and blockchain, the lack of clear regulations in the U.S. has made it difficult for companies like Mythical Games to fully embrace the technology.
He stated that, “Crypto is still a new and emerging technology, and although it has a lot of promise, there’s still a lot of uncertainty and confusion around it. There are regulatory challenges that need to be addressed before we can fully embrace crypto.”
The issue of regulatory uncertainty has been a major concern for the cryptocurrency industry in the United States. While companies and investors are eager to tap into the potential of blockchain technology and cryptocurrencies, the lack of clear regulation has made it difficult for them to do so.
This has led to a number of challenges, including difficulty in obtaining banking services, uncertain tax treatment, and challenges with compliance issues.
Linden highlighted that Mythical Games takes a very conservative approach when it comes to cryptocurrency, and views it more as a means of payment rather than an investment vehicle.
“We accept certain cryptocurrencies as payment for our products, but we don’t hold a lot of it on our balance sheet. We view it more as a transactional tool, rather than an investment,” he explained.
He added that while the company is open to exploring the potential of blockchain technology in the future, any new projects would need to be carefully evaluated and would need to be compliant with any relevant regulations.
Linden also highlighted that regulatory clarity in the United States is currently lacking and is hindering the growth of the cryptocurrency industry.
“There needs to be more clarity and consistency around regulation, so companies can operate without having to constantly worry about compliance issues. This will allow the industry to grow and mature,” he said.
He added that it’s essential that regulators work with companies in the industry to ensure that regulation is tailored to the unique needs of blockchain and cryptocurrency.
“In order for this technology to reach its full potential, we need regulators to collaborate with companies and take a proactive approach to setting the right framework. It’s not just about protecting investors, it’s about creating an environment that allows innovation and growth,” he said.
Overall, Linden’s comments serve as a reminder that regulation is a critical factor in the success of the cryptocurrency industry. While the potential for blockchain and crypto is enormous, without clear regulations, it will be difficult for companies to fully embrace this new technology.
As the industry continues to evolve, it will be essential for regulators to work closely with companies to create a regulatory framework that supports innovation and growth while also protecting investors and consumers. Only then can the full potential of blockchain and cryptocurrency be realized.
Regulatory uncertainties in the U.S. surrounding digital assets have prompted California-based game studio Mythical Games to take a conservative approach to the use of cryptocurrencies and related services in its games, according to CEO John Linden.
Linden revealed that the company is planning a traditional equity fundraising with no plans for initial coin offerings (ICO). “If there was a very, very clear rule, I think we would have tried other stuff,” he said.
The move comes as U.S. authorities continue to clamp down on the crypto sector, with seemingly unclear standards of enforcement, especially on the classification of cryptocurrencies and related services as financial securities.
This week, Coinbase, the largest cryptocurrency exchange in the U.S., filed a lawsuit against the U.S. Securities and Exchange Commission, requesting the regulator to publicly respond to its July 2022 petition for clearer crypto regulation guidelines.
For Mythical Games, its line of games allows players to turn their characters or achievements into tradable non-fungible tokens without in-game cryptocurrencies. In October 2022, the company established the Mythos Foundation to manage the Mythos blockchain gaming ecosystem and the Mythos token. The foundation facilitates Mythos DAO (decentralized autonomous organization) to encourage game developers, gaming guilds and e-sports teams to participate in the Web3 ecosystem.
Mythical’s Asia focus remains on South Korea and Japan, but Linden says the company is bullish on Web3 growth in the entire Asia-Pacific. “I think it’s also moving the fastest in concrete regulatory movements forward,” he said.
Mythical Games, established in 2018, has around 1.5 million players with its open-world multiplayer Web3 game Blankos Block Party. Its new football game NFL Rivals is set to launch globally on 26 April.
Linden hopes to identify non-U.S. partners during his visit to South Korea as Mythical eyes global expansion. The company is seeking opportunities to bring “unique” intellectual property in South Korea and Japan to the West, with his team in discussion with K-pop groups for potential partnerships.
In South Korea, games with elements of blockchain technology are banned because of potential market speculation among players. But Mythical is tracking regulatory developments around the world, said Linden, declining to share details on its expansion in South Korea.
To conclude, Mythical Games is taking a cautious stance related to cryptocurrencies and related services in its games due to regulatory uncertainties in the U.S. and is focusing on traditional equity fundraising. The company is bullish on Web3 growth in the entire Asia-Pacific and hopes to identify non-U.S. partners during its South Korea visit ahead of global expansion.