The shrapnel of the Web3 video game developed in the United States has been approved to operate on the China-backed RWA copyright chain, allowing the game to distribute projects marked in-games under Chinese law and make it the first title based on foreign blockchains to achieve legal recognition in the country.
By obtaining this license, shrapnel can gain access to one of the world’s largest gaming markets (over $40 billion) within full regulatory compliance.
The game’s China launch will involve local partnerships, new distribution channels, and integration with the country’s asset verification system.
Source: ShieldWhat can we expect from the latest developments?
The Chinese version of shrapnel will be different from its global counterparts in several ways. A localized game launcher will be developed for internal distribution in China and will be issued and tracked through RWA copyright chains, a state-approved blockchain system designed to handle the legal rights of digital goods.
In-game assets such as skins, devices and cosmetics will be legally recognized as digital property within the jurisdiction of China. These items can be purchased, sold and traded through new markets operated under national guidelines.
The promotion will be supported by Lingjing Game Labs, the official Chinese Communist Party newspaper “Manday”. The partnership will handle localization, asset minting, compliance and trading systems.
Source: ShieldWhy is this important?
This marks the first time that foreign Web3 games have received formal permission to issue marked in-game assets in China under government supervision, reflecting a significant shift in China’s approach to blockchain technology, which is often subject to strict regulation or restriction, especially in connection with decentralized finance or cryptocurrencies.
By working within China’s regulatory framework, Shrapnel effectively creates a model for how other foreign digital products enter the market. It also demonstrates the interest of the Chinese government to support blockchain applications that are aligned with national priorities such as IP protection and digital asset tracking.
While the move does not indicate broader policy liberalization, it highlights avenues for the adherence to cross-border collaboration in the digital economy.
