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The ESA insisted virtual items have no real-world value when the Federal Trade Commission looked into loot boxes. 'The argument that virtual items don't have real-world value has been a key part of the industry's defense against accusations that loot boxes are gambling'Д«eyond taxation, the argument that virtual items don't have real-world value has been a key part of the industry's defense against accusations that loot boxes are gambling. A German tax court recently ruled that renting virtual buildings with virtual currency was subject to actual taxes. The US government started looking into taxation on the exchange of virtual goods in games like Second Life and World of Warcraft some 15 years ago. The idea of virtual items having 'real-world value' has been a contentious issue for years. 'Steam's point of view is that items have value and they don't allow items that can have real-world value on their platform,' Age of Rust developer SpacePirate Games said on its Twitter account last week as it spread news of the blockchain ban. Valve hasn't yet explained why it's banning NFT and blockchain games, but a developer of one such game has given us some indication. It was an unusually proactive move for a company that typically takes an 'anything goes' approach to what happens on the platform, and then reverses course only when people point out the entirely foreseeable problems or it gets yelled at loudly enough.ДЄs much as I would like to give Valve credit here for assessing the downsides of blockchain technology and refusing to contribute to an environmentally disastrous speculative bubble with no compelling use case in games - which is our stated reason for limiting coverage of blockchain start-ups - it doesn't seem like that has anything to do with Valve's reasoning. Last week, Valve updated the Steam rules to prohibit games based on blockchain that issue cryptocurrency or NFTs, or let users exchange them.

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