The US Consumer Financial Protection Bureau (CFPB) has warned about potential financial risks linked to video games and virtual worlds involving cryptocurrencies. In the report titled "Banking in Video Games and Virtual Worlds," the CFPB emphasized the rise of game developers integrating virtual elements into the real world. Although cryptoassets are currently a small part of the virtual gaming universe, the report suggests that this could change in the future.

The CFPB's report, which was published on Thursday, focused on virtual gaming overall but also highlighted cryptoasset virtual worlds, despite being less popular than mainstream virtual gaming platforms like Roblox, Second Life, or Fortnite. These cryptoasset virtual worlds are becoming more significant due to the presence of third-party platforms for trading cryptoassets.

The report explained how these platforms enable users to convert their virtual world's native crypto assets into fiat currency, making them more permeable than traditional gaming markets. It also mentioned that major virtual gaming world developers are increasingly interested in presenting their virtual items as crypto assets for trading outside the game ecosystem.

The CFPB pointed out that crypto assets from worlds like Decentraland and The Sandbox could be purchased and sold on different crypto platforms for USD.

Reminder: This is not financial advice.