Developments relating to the NFTs regulation of stablecoins will be of NFTs are considered a popular interest to those game developers way of integrating ownership that currently use stablecoins to into video games, particularly facilitate in-game purchases. Web3 games. At the moment, the Phase two developments government’s view is that NFTs are more likely digital collectibles Phase two seeks to introduce an FCA or artwork than financial services licensing regime for those providing products. However, it is aware that certain activities in relation to there are tokens on the market that currently unregulated cryptoassets. are labelled NFTs that have other The government plans to introduce functions, which may fall within legislation in 2024 to implement the scope of any future regulation phase two, subject to Parliamentary and has referred explicitly to this time. This will be accompanied by possibility in the context of detailed FCA rules and guidance. in-game purchases. It is expected to have a large impact on the gaming sector as it will further increase the likelihood of Web3 games falling within scope of regulation, for example, Web3 games that enable players to trade cryptoassets and/or provide an in-game economy. 70