Stepn (GMT) Prohibits all Mainland Chinese Users

QUICK TAKE:

Stepn announced it will prohibit users from mainland China to comply with regulatory policies
On 15th July, the lifestyle platform will begin “checking and clearing out” mainland Chinese users
Stepn will stop offering GPS and IP geolocation services to users from Mainland Chinese
Stepn, a popular lifestyle-based platform, announced on 26th May 2022 that it will prohibit users from mainland China from complying with regulatory policies. It describes itself as a “move-to-earn” game, that allows users to buy and sell NFT trainers and in-game cryptocurrencies by walking or jogging in the real world. Players can then pay out their in-game winnings or convert them to other cryptocurrencies.
On 15th July, the game will begin “checking and clearing out” mainland Chinese users. And soon after that, it will stop offering GPS and IP geolocation services to them. The statement released by Stepn advised mainland Chinese users to make their own arrangements for their assets. Furthermore, Stepn said they will be providing more details to users through their official social media announcements, emails, in-app alerts, etc.
Stepn even announced on Twitter Space that the reason for prohibiting Chinese users is that its technical staff is based in China and must adhere to local regulatory rules. Stepn also stated in its statement that it has never “run any business” or provide any download channels in mainland China. In the future, Stepn will continue to focus on products rather than token pricing. And notably, the game was co-founded by Jerry Huang and Yawn Rong, two Chinese entrepreneurs based in Australia.

Stepn coin (GMT) drops after the announcement

According to Dune Analytics, the game has over 580,000 users, with roughly 39,000 activities in the last 24 hours. Moreover, soon after the announcement, its in-game coin, GMT, dropped 38% from the previous day. Although it’s unclear how many Stepn users are from mainland China. After the announcement, the game has temporarily become the top trending search word on the Chinese social media platform – Weibo.
For years, Chinese authorities have been tightening down on cryptocurrency-related activity. Notably, last year, the central bank issued a warning regarding international cryptocurrency exchanges, prompting big exchanges such as Binance and Huobi to leave the country.