As insurance brokers specialising in gaming, we get a lot of questions from both clients and insurers about in-game or virtual currency. After attending a thought provoking panel at More Than Just a Game, I’ve pulled together a few highlights and practical tips for studios.
What is In‑Game Currency vs. Virtual Currency?
In‑game currency stays inside the game universe.
Virtual currency may hint at real‑world value or convertibility. That difference matters to regulators.
What if Players Can Convert Currency to Cash?
Most games use a simple one‑way model (fiat in, no cash out) to avoid being classified as financial services. But if value can be cashed out or exchanged, your studio may be viewed as a currency exchange, which brings significant legal obligations. And no, setting up as a DAO is not a get out of jail free card…!
Is the currency essential to gameplay?
This is quite an important test. If the currency is considered “essential to gameplay or progression”, regulators may view it simply as part of the game experience. But if it exists mainly to purchase cosmetics or extras, it could fall under stricter consumer and financial regulations.
Monopoly (the classic board game, not Monopoly Go) is often cited as an example “well that has in-game currency…and that doesn’t need to be regulated.” But that’s because the monopoly money is very much integral to the game itself.
How to Legally Waive Withdrawal Rights
In the EU and UK, consumers generally have a 14‑day right to cancel purchases unless:
- You clearly tell them before purchase that they give up that right.
- You obtain explicit consent to immediate delivery (typically via a checkbox).
- You confirm it in writing (receipt or email).
That applies even if you use providers like Xsolla, Stripe or Unity IAP. These platforms provide infrastructure, but the onus is still on your studio to ensure the right language, legal flow, and user prompts are implemented correctly. Some court rulings expect a two‑step consent checkbox to ensure the consumer knowingly waives the right.
What about the kids?
Age-appropriate design is especially important when it comes to in-app purchases, as younger players are more vulnerable to nudging, pressure tactics, and unclear spending systems. Even if your game isn’t aimed at children, if it’s likely to be accessed by users under 18, you have legal and ethical responsibilities.
in the UK under the ICO’s Children’s Code, and globally under laws like GDPR and COPPA. You need to take proportionate steps to identify users’ ages, such as using age gates, age estimation tools, or third-party verification if high-risk features (like real-money purchases) are involved. It’s usually not enough to just ask for a birth date.
If you get this wrong, you risk forced refunds, fines, or platform bans. The tricky part is that games often attract mixed-age audiences, so your in-app monetisation flow needs to adapt to different levels of maturity, what’s appropriate for a 17-year-old may not be for a 10-year-old. The younger the user, the stronger your safeguards need to be. It’s hard to get right but https://www.k-id.com/ are doing some amazing work to help studios build with this in mind.
Risks of Getting It Wrong
Non‑compliance can lead to forced refunds long after purchase, fines, regulators’ corrective orders or removal from platforms. Insurance may help pay legal or defence costs (happy to chat!!), but compliance is always your first line of defence.
International Snapshot
- EU/UK: governed by the Consumer Rights Directive (2011/83/EU)
- US: fewer federal laws, but state regulators and lawyers are enforcing deceptive practices in in‑game monetisation
- Other markets: check local consumer and e‑commerce rules
Where to Find Reliable Guidance
- EU Consumer Rights Directive
- UK Gov: Digital content & consumer rights
- US studios: review terms with a digital commerce attorney
- Global publishers: consult local consumer law or compliance advisors
If you cannot prove clear consent and immediate delivery, you are likely not compliant.
What Are CPC Principles and Why They Matter
The Consumer Protection Cooperation (CPC) Network published seven key principles in March 2025. They guide enforcement of the Unfair Commercial Practices Directive, Consumer Rights Directive and Digital Content Directive.
Their focus includes:
- Showing prices in real‑world money
- Avoiding complex multi‑currency systems that obscure costs
- Letting players buy exactly the amount they need, not forcing bundles
- Providing clear pre‑contractual info
- Respecting the right of withdrawal even for unused virtual currency
- Using plain language in contract terms
- Protecting vulnerable consumers, especially children
These principles are not binding law. But they reflect how regulators interpret and enforce existing rules. Taking these principles into consideration as well as some of the other things I’ve mentioned here, by designing your systems from the ground up with compliance in mind you can avoid some serious headaches later (and hopefully make a better ecosystem and experience for the end user, which should always be the goal!)
We are video game industry specialist insurance brokers and love learning about the intricacies of game development. We provide risk advice and insurance solutions to studios and are driven by a genuine passion for the industry.