Nexpace (NXPC) Hits 5 Trillion Won Market Cap, Korean Gamers Face Access Issues

# Nexon's Nexpace Token Soars Amid South Korea's Blockchain Gaming Regulatory Challenges Nexon, a major force in the gaming industry, recently launched its blockchain game ecosystem, NEXPACE. The platform's native token, [Nexpace (NXPC)](https://api.blockmedia.co.kr/binance/outlink/?path=maplestory-universe), surged 115% shortly after its debut, pushing its fully diluted valuation (FDV) to approximately 5 trillion won and its market cap to 800 billion won at its peak. Although the FDV has since corrected to around 4 trillion won, this valuation still competes with leading domestic gaming companies. For perspective, Nexon's market capitalization is around 2.11 trillion yen (about 20 trillion won) on the Tokyo Stock Exchange as of May 15, 2025. Nexpace tokens initially traded at 3,000 won but quickly doubled in value, attracting significant domestic and international trading interest on exchanges like Bithumb, Binance, and Upbit. The market's enthusiasm reflects high expectations as Nexon, a traditionally strong player, steps into the blockchain gaming space. The sector has seen significant interest from other Korean giants such as Wemade, Netmarble, Com2uS, and Neowiz. The global GameFi market is expected to grow by over 40% annually, reaching approximately 150 trillion won in five years. To capitalize on this growth, gaming companies are aggressively pursuing blockchain-based projects. However, there's a notable paradox: while South Korean gaming firms excel in blockchain gaming, local gamers are largely barred from accessing these innovative games and services. # Major Blockchain Games Blocked for Domestic Users South Korean players cannot access Nexon’s blockchain game, MapleStory N, without using a VPN. The "MapleStory Universe" ecosystem, which features NFTs and digital asset incentives, is unavailable in South Korea due to regulatory constraints. Several key blockchain gaming platforms and projects are blocked from domestic users, including: - **MapleStory N (Nexon):** This game uses Nexon's iconic IP and features P2E (Play-to-Earn) mechanics, allowing players to trade in-game tokens (NESO) for Nexpace and manage NFT items. However, due to the Game Industry Promotion Act, which bans domestic blockchain gaming operations, the game is only available overseas. South Korean players need a VPN to access it. - **Wemix (Wemade):** Known for its MMORPG "MIR4," Wemade operates the Wemix Play global platform and its native Wemix token. From June 25, 2024, the platform will block South Korean IPs and cease Korean language support to comply with local regulations after allegations that Wemix’s wallet operated as an unregistered VASP in South Korea. - **MARBLEX (Netmarble):** Netmarble’s blockchain platform introduces the $MBX token ecosystem to games like "A3: Still Alive" and “The King of Fighters ARENA." However, domestic releases either exclude blockchain features or are not launched at all. For example, "Meta World: Monopoly" had separate global and Korean versions, with the latter lacking P2E elements. - **XPLA (Com2uS):** Formerly known as C2X, the platform connects the global version of "Summoners War: Chronicle" to $XPLA tokens, while the Korean version omits P2E functionality. Com2uS focuses its blockchain ventures abroad, particularly in the U.S., to navigate local regulations. - **NEOPIN (Neowiz):** Managed by Neowiz affiliate Neoply, NEOPIN offers P2E games like "Brown Dust (Global)" with staking and token swap features. However, domestic users face app access restrictions due to regulatory measures. Efforts to commercialize blockchain gaming in South Korea are stymied by stringent regulations. The Google Play Store and Apple App Store in South Korea do not approve games with P2E elements, blocking downloads entirely. Moreover, services associated with these blockchain games, like wallets, actively block South Korean IPs. # Fallout from the "Sea Story" Scandal and Regulatory Scrutiny South Korea's strict blockchain gaming regulations stem from the notorious "Sea Story" scandal in the mid-2000s, where gambling-like mechanics in adult prize-reward games sparked a social outcry. This led to the Game Industry Promotion Act and the creation of the Game Rating and Administration Committee (GRAC). The Act bans prize mechanics perceived to foster gambling tendencies. For example, GRAC views blockchain-based NFTs and cryptocurrency rewards as "illicit gambling incentives." South Korean courts have upheld these interpretations. In 2021, GRAC revoked approval for "Five Stars for Klaytn," citing its NFT-based system as violating anti-gambling laws. The game publisher's lawsuit failed, with courts supporting the regulatory framework. As NFTs allow gamers to trade in-game assets for real-world value, regulators equate blockchain games with speculative behavior similar to gambling, drawing parallels to the "score tickets" that spurred the "Sea Story" scandal. Consequently, the Game Industry Promotion Act's strict provisions continue to ban blockchain gaming in South Korea. # Legal and Financial Hurdles Legally, the Game Industry Promotion Act’s anti-speculation clauses are the primary barrier to P2E games in South Korea. These games, which monetize in-game items or tokens, are seen as promoting gambling-like elements. Financially, blockchain games face stringent scrutiny under the Special Financial Information Act, requiring virtual asset businesses to adhere to anti-money laundering laws. Wemade's recent controversy highlights these challenges. Despite initially operating domestically through a Singaporean subsidiary, the platform faced regulatory sanctions for failing to register as a VASP, leading to its withdrawal from the South Korean market. # Opportunity Costs and Calls for Reform The restrictive regulatory environment has created a “Galápagos” effect for South Korea’s blockchain gaming industry, isolating it from global developments. Local gamers are sidelined, companies pursue offshore markets, and South Korea misses out on potential economic benefits like taxes, jobs, and technological advancements. While proponents of strict regulation express concerns about speculative risks, others argue that South Korea's laws lag behind technological advancements and global competitiveness. Countries like Japan and the U.S. are adopting more moderate approaches to blockchain gaming. Domestic discussions are underway, with public hearings and policy debates laying the groundwork for potential reform. Until then, South Korea’s blockchain gaming sector faces significant challenges in aligning with global trends. Finding a balanced policy will be crucial as industry leaders like Nexon strive to bridge the gap between regulation and innovation.