The project said that it would actively respond to relevant regulatory policies, checking users as a result. Should any users in mainland China be found, STEPN will open their accounts in July 2022 according to the terms of use. However, on May 15, it will stop GPS and IP location services.
1/ 關於清查中國大陸帳戶的公告
尊敬的STEPN用戶：
為積極主動響應相關監管政策，STEPN將對軟體用戶進行清查，若發現中國大陸地區用戶，則STEPN將依據使用條款對其賬戶於2022年7月15日（UTC+8）24:00 停止提供GPS及IP位置服務。
The project explained the process further, saying that users would have to make their own decisions about handling in-app assets,
“If you expect to log in and use your account from a GPS or IP location in the region over a long period of time, we encourage you to make your own decisions about the handling of in-app assets. During this period, more details will be notified to users through official social media announcements, emails, in-app alerts, etc.”
Chinese users account for 5% of the app’s three million users. The project will have had no choice but to comply with local jurisdiction, or risk incurring the wrath of the Chinese government. It is far from the first project to drop services in China, and it may even come as a surprise that it is happening so late.
Projects Face Potential Restrictions As Governments Catch Up
STEPN’s decision to step out of China is symbolic of how the wider world is changing when it comes to crypto apps. Governments see this as unregulated ways to earn money, and they want restrictions on this. Taxation and KYC are among the highest priorities.
This is the reason that GameFi and play-to-earn games have become such a problem in many countries. Latin America and Southeast Asia in particular has seen a great deal of growth in these sectors, and governments have taken note.
However, in some cases, enthusiasts will fight bans and restrictions, despite all the risks associated with it. Bitcoin miners in China have defied the ban and have increased their hashrate to become the country with the second-largest hashrate.
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