(bolding added)
Indirectly offering fiat to crypto conversion is nominally nice, a feature like OKCoin, Coinbase, Kraken, or other large regulated exchanges but on smaller scale.
However, I do wonder how much investigation has been done into issues with AML / KYC regulations. In the U.S., those antiprivacy regulations are seriously nasty, to a degree which could greatly surprise anyone who has not extensively looked into the matter. Europe is sometimes a little better in that regard, though still with issues.
Hopefully you guys aren't too based in the U.S., as you likely really wouldn't want GameCredits to be counted as "an administrator" of a cryptocurrency under U.S. money services business laws and FINCEN regulations on what counts as an MSB. Games won't want to require players to upload scans of photo IDs, utility bills, and the like.
The preceding is among the reasons that few major cryptocurrency startups have happened in the U.S., other than some small ones sneaking under the radar (and aside from possibly Bitcoin itself but with Satoshi Nakamoto -- probably not his real name -- concluding to go dark and flee). Ripple was an exception, yet they did have huge issues in their history including millions of dollars of government fines and forced changes.
GameCredits has an U.S. contact address on its website. Fortunately for this, the CEO and some others appear to be European. However, even if GameCredits is decentralized or non-U.S. enough to get by itself, "regulatory compliance" can still be an issue for game companies using GameCredits, if there is back and forth conversion between GAME and fiat.
First of all, thank you for the detail and time you put into this, you clearly know your stuff.
To clarify, we are in fact decentralized with offices in Los Angeles, Belgrade, and Moscow. But to address some of your concerns. GameCredits has spent the last several months investigating all of the legalities behind the use of GAME for in game purchases, game purchases, etc. Our proprietary method of exchanging GAME for Credit Card purchases works in such a way that it avoids many inherent complications. It's hard for me to discuss why without giving away too much, but my point is we have spent all of our time up until this release making sure GameCredits INC. and developers will not run into such issues.
However, you clearly have a lot of knowledge. If you're interested in starting a dialogue with us, and believe you can help us out in anyway, feel free to join our Slack Channel. I'm sure members of the GameCredits team would be willing to discuss such matters. We could always use a wise community member such as yourself helping us out.
https://gamecredits.com/slack.html