A new way to earn rewards and money through the love of gaming, Play-to-Earn (P2E) gaming has undoubtedly taken the gaming and entertainment industry by storm. While its game-changing potential excites gamers and developers alike, it raises crucial concerns regarding player risk and safety, such as fraud, money laundering, and hacking. As a result, gaming companies are turning to outsourced compliance providers to help them navigate the complex regulatory landscape to meet compliance requirements.
P2E gaming integrity is vital in ensuring transparency, fairness, regulatory compliance, and overall safety and security for players to have a safe and fair gaming experience. Integrity is a key component of regulatory compliance, and a breach can lead to severe consequences for developers and players alike. Lack of a platform’s security integrity can also attract malicious actors looking to exploit vulnerabilities in the system.
P2E gaming has exploded in popularity, impacting the lives of many players involved in the new genre. But for every goldmine, there are land mines to watch out for. Fraud, money laundering, and hacking pose serious threats to the entire P2E community. Scammers may trick players into buying non-existent items or divulging sensitive info, endangering themselves, and the game’s ability to protect its users. Illicit actors may also use the game to launder money, utilizing stolen payment info to purchase and sell virtual goods. Hackers can steal in-game items, currency, or player data, then trade or sell the items and cash out their “winnings”, essentially cleaning their illicit gains through the platform while wreaking havoc on the game’s ecosystem.
With complex regulatory requirements and fluctuating seasonal demands, many businesses in the P2E industry rely on outsourced providers to maintain their integrity. It’s also a great way to extend a business’s sustainability, providing flexibility, cost-effectiveness, and scalability.
Seasonal and cyclical demands are common in any industry, but remain to be a challenge for businesses. Platforms with an outsourced partner stand a much better chance of navigating the various intricacies of fluctuating demands while keeping labor costs low, predictable, and efficient. Outsourcing also eliminates the complexities and overhead costs of employment, such as legal, recruitment, compliance, taxation, and office management.
Outsourcing partners with proven experience and capabilities in compliance outsourcing can lead the planning and implementation of policies and procedures, risk assessments, and monitoring and testing. Moreover, they can identify and prevent potential risks such as fraud, money laundering, and hacking. These providers can assist in investigating and mitigating the impact of illicit activities. Given their unique position, the right partner can also provide insights into the larger industry on what best practices are being deployed while building bespoke programs that fit the specific needs of your platform, based on first-hand experiences working with similar organizations in the space.
Some of the key services provided by trusted outsourced compliance providers include:
Outsourcing compliance and regulatory work to specialized providers is an excellent way to boost cost savings, increase efficiency, improve the quality of service, and create overall sustainability.
Cost is also another financial compliance challenge, as meeting regulatory requirements can be expensive, especially for small and medium-sized gaming companies. Hiring additional staff, investing in new technology and systems, and conducting ongoing training and education for employees are just some of the costs that come with meeting compliance requirements alone.
With the right outsourcing partner, P2E gaming companies can demonstrate a competitive Compliance posture with laws and regulations, and maintain their commitment to integrity and protection when it comes to player interests.
The importance of regulatory compliance and risk management cannot be overstated. Specialized compliance providers play a vital role in helping P2E gaming companies navigate the complex regulatory landscape and ensure compliance with laws and regulations.
Recognized by the Everest Group as the World’s Fastest Business Process (Outsourcing) Service Provider in 2022 and with glowing reviews in Gartner Peer Insights Review, TaskUs always has a game plan ready to stay ahead of the ever-changing compliance landscape. We simplify compliance regulation for our partner clients by deploying and scaling AML/CFT compliance, sanctions screening, and enhanced due diligence teams that adapt to regulatory changes in real time. With TaskUs as your compliance provider, you can improve the quality of your compliance performance, reduce the risk of regulatory penalties, and enhance the experience of your players, resulting in enhanced customer confidence and satisfaction.