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Why NFTs and crypto are banned on Steam

By Andrew Lin

HONG KONG, CHINA - FEBRUARY 15: Pedestrians walk past a digital screen displaying the prices of cryptocurrencies Bitcoin on February 15, 2022 in Hong Kong, China. Cryptocurrencies are gaining popularity worldwide as investors seek to diversify into the new asset class despite wild swings in the valuations of assets like Bitcoin and Ethereum in the first weeks of the year. Buying and selling crypto is becoming common in many places, like Hong Kong, where regulators have so far avoided using a heavy hand to manage crypto platforms. (Photo by Anthony Kwan/Getty Images)
HONG KONG, CHINA - FEBRUARY 15: Pedestrians walk past a digital screen displaying the prices of cryptocurrencies Bitcoin on February 15, 2022 in Hong Kong, China. Cryptocurrencies are gaining popularity worldwide as investors seek to diversify into the new asset class despite wild swings in the valuations of assets like Bitcoin and Ethereum in the first weeks of the year. Buying and selling crypto is becoming common in many places, like Hong Kong, where regulators have so far avoided using a heavy hand to manage crypto platforms. (Photo by Anthony Kwan/Getty Images) /
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NFTs and blockchain tech are a contentious topic, especially in the gaming industry. Valve previously banned all blockchain based games from Steam, and now Gabe Newell has shed some light as to why.

Why NFTs, Crypto are banned on Steam


In an interview with Eurogamer, Valve President Gabe Newell elaborated on the ban. The primary reason for this ban is the sketchy and borderline illegal practices that surround the blockchain.

Gaben isn’t against blockchain tech as a whole, but with how it’s implemented currently. He likened it to accepting cryptocurrencies on their storefront.

“We have the same problem when we’re accepting cryptocurrencies, 50 percent of the cryptocurrency paid for transactions were fraudulent, right?” Newell said.

What’s interesting in Newell’s response is the consumer experience when dealing with crypto, especially when it comes to the volatile value of them. Consumers don’t know the price they’re paying.

It seems for Steam, the consumer comes first. They won’t go to cash in a quick buck with NFTs or crypto, and want to avoid situations where someone bought something with a cryptocurrency that crashed the next day.

Newell concludes the interview condemning the crypto business. “The people who are currently active in that space are not usually good actors,” Newell said.

This insight into the crypto debate helps us see the difference between digital currency and digital assets. CS:GO skins are notorious for having high resale value, despite being digital assets as well.

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The difference is that the aftermarket value of something like a skin is determined after its creation. It’s a game first, and the commodity develops organically with supply and demand.

The crypto boom is not organic, and has been artificially inflated by malicious actors looking to scam people. It’s a volatile space of pumping and dumping.

The money’s too dirty for Valve, and it continues its pro-consumer stance by avoiding potential issues altogether.

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