Uzbekistan regulators have not prohibited citizens from playing the Hamster Kombat clicker game on Telegram, although cashing out in-game coins could pose some issues.
The National Agency for Perspective Projects (NAPP) of Uzbekistan, a key regulatory body overseeing e-commerce and the cryptocurrency industry, released a statement on June 25 elucidating the legal standing of the Hamster Kombat game.
In the announcement, the NAPP underscored that Hamster Kombat does not qualify as a typical play-to-earn game, as its in-game coins lack real-world utility or backing.
In contrast, in play-to-earn games, players receive assets with tangible monetary value, such as cryptocurrencies or non-fungible tokens (NFT).
For instance, in a game like Axie Infinity, players can amass Axies — collectible creatures used for battles in the game or trading on marketplaces.
Based on the NAPP’s assessment, Uzbekistan residents are permitted to engage in the Hamster Kombat game and accumulate in-game tokens since they are not actual cryptocurrencies and are not based on blockchain. Consequently, Hamster Kombat tokens fall outside the scope of NAPP’s regulation.
Nonetheless, the NAPP cautioned that Hamster Kombat coins could potentially transition to the blockchain in the future, transforming into a crypto asset.
While playing and collecting tokens on the Hamster Kombat game is not illegal in Uzbekistan, selling in-game tokens is likely to pose challenges due to local regulations.
According to the NAPP, Hamster Kombat players will only be able to sell their in-game tokens once the underlying token is authorized as a crypto asset and listed on a regulated national exchange.
However, the NAPP cautioned that such crypto-assets often depreciate in value shortly after listing due to the lack of practical functionality.
Launched in March 2024, Hamster Kombat is a tap-to-earn game on Telegram where players assume the role of a virtual cryptocurrency exchange CEO. The game has gained immense popularity among mobile users, reaching 9 million followers in June.
Often dubbed as the “next Notcoin,” Hamster Kombat and Notcoin are both Telegram-based clicker games and part of the expanding ecosystem of The Open Network (TON). Notcoin has emerged as one of the most successful games in the TON ecosystem, accumulating 11.5 million holders after listing in mid-May 2024.
The news comes shortly after local news outlet Uzbek-MDK reported that Uzbekistani prosecutors would detain Hamster Kombat players attempting to cash out in-game tokens. Previously, a local court reportedly sentenced a 24-year-old man to 10 days of administrative imprisonment for selling Notcoin (NOT) tokens for 800,000 Uzbekistan soms, equivalent to $63.
According to local reports, Telegram CEO Pavel Durov was seen in Uzbekistan in June. Some sources suggest that his visit may be linked to collaborating with regulators to discuss the legal status of the TON ecosystem in the country.