What’s Your New Year's Resolution?

Introduction

The development of high-speed broadband internet in the 90s triggered a growth in online gaming, particularly in East Asian countries like South Korea and China. This culminated in the proliferation of competitive video game genres, which had otherwise existed mostly in the form of high-score and face-to-face competitions at arcades. The online competitive gaming market has only become bigger over the years, with a separate domain for professional competition, called esports. This industry is projected to reach US$4.3 billion by 2029,  driven by advancements in gaming technology, increased viewership, multi-million dollar tournaments, professional leagues, sponsorships, and advertising revenues. However, the industry is still in its infancy and struggles with fairness and integrity issues. It can draw lessons in regulation from the traditional sports market to address these challenges for uniform global growth.

The Growth of Esports

The appeal of online gaming lies in its design innovations, social connectivity, and accessibility. Its rising popularity has culminated in online gaming competitions becoming an industry, formally organised into leagues and tournaments with reward prizes reaching up to millions of dollars. Professional teams now have coaches, analysts and psychologists supporting their players. For scale, the 2024 ESports World Cup (EWS) held in Saudi Arabia had the largest combined prize pool of over US$60 million. Such tournaments can be viewed in arenas and streamed online, and by 2025, around 322.7 million people are forecast to be occasional viewers of esports events. 

According to Statista, esports revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.59%, resulting in a projected market volume of US$5.9 billion by 2029. Esports has even been recognised in traditional sporting events, debuting as a medal sport in the Asian Games 2022. In 2024, the International Olympic Committee (IOC) announced the Olympic Esports Games, with the inaugural event set to take place in 2025 in Saudi Arabia. Hosting esports events such as the EWS is expected to boost tourism and the host country’s local economy.

The Challenges of Esports Regulation

While the esports ecosystem provides numerous opportunities for growth and partnerships, its under-regulation presents challenges. Due to the lack of a single governing body like the IOC for the Olympics or FIFA for football to lay down centralised rules, the industry faces certain challenges, such as : 

1. Integrity issues: Esports are not immune to cheating attempts. Match-fixing, using advanced software hacks, doping (e.g., Adderall use), and the use of other illegal aids are common.  DOTA, Counter-Strike, and Overwatch tournaments are particularly susceptible to cheating scandals. 
2. Players’ Rights: The teams that contractually own professional players provide remuneration and exercise significant control over athletes, who face issues like overwork, a short-lived career, stress, the absence of collective bargaining forums, instability, etc. 
3. Fragmented National Regulations: While multiple countries have recognised esports as a sport, policies on esports governance and allied regulation vary within and across borders. For example, age restrictions and laws on gambling, taxation, labour, and advertising differ by country. This can create confusion, risks and extra costs, impacting the growth of the ecosystem. 
4. Cybersecurity Concerns: The esports industry carries substantial prize pools and has growing viewer engagement, which makes it increasingly vulnerable to Distributed Denial of Service (DDoS) attacks, malware, ransomware, data breaches, phishing, and account hijacking. Tournament organisers must prioritise investments in secure network infrastructure, perform regular security audits, encrypt sensitive data, implement network monitoring, utilise API penetration testing tools, deploy intrusion detection systems, and establish comprehensive incident response and mitigation plans.

Proposals for Esports Regulation: Lessons from Traditional Sports

To address the most urgent challenges to the esports industry as outlined above,  the following interventions, drawing on the governance and regulatory frameworks of traditional sports, can be made:

1. Need for a Centralised Esports Governing Body: Unlike traditional sports, the esports landscape lacks a Global Sports Organisation (GSO) to oversee its governance. Instead, it is handled de facto by game publishers with industry interests different from those of traditional GSOs. Publishers’ primary source of revenue is not esports, which means they can adopt policies unsuitable for its growth but good for their core business. Appointing a centralised governing body with the power to balance the interests of multiple stakeholders and manage issues like unregulated gambling, athlete health, and integrity challenges is a logical next step for this industry. 
2. Gambling/Betting Regulations: While national laws on gambling/betting vary, GSOs establish uniform codes of conduct that bind participants contractually, ensuring consistent ethical standards across jurisdictions. Similar rules in esports are managed by individual publishers/ tournament organisers, leading to inconsistencies and legal grey areas. The esports ecosystem needs standardised regulation to preserve fair play codes and competitive integrity.
3. Anti-Doping Policies: There is increasing adderall abuse among young players to enhance performance with the rising monetary stakes in esports. The industry must establish a global framework similar to the  World Anti-Doping Code, which, in conjunction with eight international standards, harmonises anti-doping policies across all traditional sports and countries in the world. The esports industry should either adopt this or develop its own policy to curb stimulant abuse. 
4. Norms for Participant Health:  Professional players start around age 16 or 17 and tend to retire around 24. They may be subjected to rigorous practice hours and stringent contracts by the teams that own them. There is a need for international norm-setting by a federation overseeing the protection of underage players. Enforcement of these norms can be one of the responsibilities of a decentralised system comprising country and state-level bodies. This also ensures fair play governance.
5. Respect and Diversity:  While esports is technologically accessible, it still has room for better representation of diverse gender identities, age groups, abilities, races, ethnicities, religions, and sexual orientations. Embracing greater diversity and inclusivity would benefit the industry's growth and enhance its potential to foster social connectivity through healthy competition.

Conclusion

The development of the world’s first esports island in Abu Dhabi gives impetus to the rapidly growing esports industry with millions of fans across the globe. To sustain this momentum, stakeholders must collaborate to build a strong governance framework that protects players, supports fans, and strengthens the ecosystem. By learning from traditional sports, esports can establish centralised governance, enforce standardised anti-doping measures, safeguard athlete rights, and promote inclusivity, especially for young and diverse communities. Embracing regulation and inclusivity will not only enhance esports' credibility but also position it as a powerful platform for unity, creativity, and social connection in the digital age.

Resources

• https://www.statista.com/outlook/amo/esports/worldwide
• https://www.statista.com/statistics/490480/global-esports-audience-size-viewer-type/ 
• https://asoworld.com/blog/global-esports-market-report-2024/#:~:text=A%20key%20driver%20of%20this%20growth%20is%20the%20Sponsorship%20%26%20Advertising,US%24288.9%20million%20in%202024. 
• https://lawschoolpolicyreview.com/2023/12/28/a-case-for-recognising-professional-esports-players-as-employees-of-their-game-publisher/ 
• https://levelblue.com/blogs/security-essentials/the-hidden-risks-of-esports-cybersecurity-on-the-virtual-battlefield 
• https://medium.com/@heyimJoost/esports-governance-and-its-failures-9ac7b3ec37ea 
• https://www.google.com/search?q=adderall+abuse+in+esports&oq=adderall+abuse+in+esports&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRiPAjIHCAIQIRiPAtIBCDU2MDdqMGo5qAIAsAIB&sourceid=chrome&ie=UTF-8 
• https://americanaddictioncenters.org/blog/esports-adderall-abuse#:~:text=A%202020%20piece%20by%20the,it%20because%20everyone%20was%20using

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Introduction

In the wake of the Spy Loan scandal, more than a dozen malicious loan apps were downloaded on Android phones from the Google Play Store, However, the number is significantly higher because they are also available on third-party marketplaces and questionable websites. 

Unmasking the Scam

When a user borrows money, these predatory lending applications capture large quantities of information from their smartphone, which is then used to blackmail and force them into returning the total with hefty interest levels. While the loan amount is disbursed to users, these predatory loan apps request sensitive information by granting access to the camera, contacts, messages, logs, images, Wi-Fi network details, calendar information, and other personal information. These are then sent to loan shark servers.

The researchers have disclosed facts about the applications used by loan sharks to mislead consumers, as well as the numerous techniques used to circumvent some of the limitations imposed on the Play Store. Malware is often created with appealing user interfaces and promotes simple and rapid access to cash with high-interest payback conditions. The revelation of the Spy Loan scandal has triggered an immediate response from law enforcement agencies worldwide. There is an urgency to protect millions of users from becoming victims of malicious loan apps, it has become extremely important for law enforcement to unmask the culprits and dismantle the cyber-criminal network.

Aap’s banned: here is the list of the apps banned by Google Play Store :

• AA Kredit: इंस्टेंट लोन ऐप (com.aa.kredit.android)
• Amor Cash: Préstamos Sin Buró (com.amorcash.credito.prestamo)
• Oro Préstamo – Efectivo rápido (com.app.lo.go)
• Cashwow (com.cashwow.cow.eg)
• CrediBus Préstamos de crédito (com.dinero.profin.prestamo.credito.credit.credibus.loan.efectivo.cash)
• ยืมด้วยความมั่นใจ – ยืมด่วน (com.flashloan.wsft)
• PréstamosCrédito – GuayabaCash (com.guayaba.cash.okredito.mx.tala)
• Préstamos De Crédito-YumiCash (com.loan.cash.credit.tala.prestmo.fast.branch.mextamo)
• Go Crédito – de confianza (com.mlo.xango)
• Instantáneo Préstamo (com.mmp.optima)
• Cartera grande (com.mxolp.postloan)
• Rápido Crédito (com.okey.prestamo)
• Finupp Lending (com.shuiyiwenhua.gl)
• 4S Cash (com.swefjjghs.weejteop)
• TrueNaira – Online Loan (com.truenaira.cashloan.moneycredit)
• EasyCash (king.credit.ng)
• สินเชื่อปลอดภัย – สะดวก (com.sc.safe.credit)
  

Risks with several dimensions

SpyLoan's loan application violates Google's Financial Services policy by unilaterally shortening the repayment period for personal loans to a few days or any other arbitrary time frame. Additionally, the company threatens users with public embarrassment and exposure if they do not comply with such unreasonable demands. 

Furthermore, the privacy rules presented by SpyLoan are misleading. While ostensibly reasonable justifications are provided for obtaining certain permissions, they are very intrusive practices. For instance, camera permission is ostensibly required for picture data uploads for Know Your Customer (KYC) purposes, and access to the user's calendar is ostensibly required to plan payment dates and reminders. However, both of these permissions are dangerous and can potentially infringe on users' privacy.

Prosecution Strategies and Legal Framework

The law enforcement agencies and legal authorities initiated prosecution strategies against the individuals who are involved in the Spy Loan Scandal, this multifaced approach involves international agreements and the exploration of innovative legal avenues. Agencies need to collaborate with International agencies to work on specific cyber-crime, leveraging the legal frameworks against digital fraud furthermore, the cross-border nature of the spy loan operation requires a strong legal framework to exchange information, extradition requests, and the pursuit of legal actions across multiple jurisdictions.

Legal Protections for Victims: Seeking Compensation and Restitution

As the legal battle unfolds in the aftermath of the Spy loan scam the focus shifts towards the victims, who suffer financial loss from such fraudulent apps. Beyond prosecuting culprits, the pursuit of justice should involve legal safeguards for victims. Existing consumer protection laws serve as a crucial shield for Spy Loan victims. These laws are designed to safeguard the rights of individuals against unfair practices.

Challenges in legal representation

As the legal hunt for justice in the Spy Loan scam progresses, it encounters challenges that demand careful navigation and strategic solutions. One of the primary obstacles in the legal pursuit of the Spy loan app lies in the jurisdictional complexities. Within the national borders, it’s quite challenging to define the jurisdiction that holds the authority, and a unified approach in prosecuting the offenders in various regions with the efforts of various government agencies.

Concealing the digital identities

One of the major challenges faced is the anonymity afforded by the digital realm poses a challenge in identifying and catching the perpetrators of the scam, the scammers conceal their identity and make it difficult for law enforcement agencies to attribute to actions against the individuals, this challenge can be overcome by joint effort by international agencies and using the advance digital forensics and use of edge cutting technology to unmask these scammers.

Technological challenges

The nature of cyber threats and crime patterns are changing day by day as technology advances this has become a challenge for legal authorities, the scammers explore vulnerabilities, making it essential, for law enforcement agencies to be a step ahead, which requires continuous training of cybercrime and cyber security.

Shaping the policies to prevent future fraud

As the scam unfolds, it has become really important to empower users by creating more and more awareness campaigns. The developers of the apps need to have a transparent approach to users.

Conclusion

It is really important to shape the policies to prevent future cyber frauds with a multifaced approach. Proposals for legislative amendments, international collaboration, accountability measures, technology protections, and public awareness programs all contribute to the creation of a legal framework that is proactive, flexible, and robust to cybercriminals' shifting techniques. The legal system is at the forefront of this effort, playing a critical role in developing regulations that will protect the digital landscape for years to come.

Safeguarding against spyware threats like SpyLoan requires vigilance and adherence to best practices. Users should exclusively download apps from official sources, meticulously verify the authenticity of offerings, scrutinize reviews, and carefully assess permissions before installation.

References

• https://www.bleepingcomputer.com/news/security/spyloan-android-malware-on-google-play-downloaded-12-million-times/#google_vignette

• https://www.gadgets360.com/apps/news/spyloan-malware-blackmail-extort-users-detected-play-store-4639194

• https://thehackernews.com/2023/12/spyloan-scandal-18-malicious-loan-apps.html

• https://www.the420.in/exposed-18-deceptive-loan-apps-google-play/

Introduction

In a groundbreaking move, India's Reserve Bank has embarked on a transformative journey with its Central Bank Digital Currency (CBDC) project. As the world grapples with the evolving landscape of digital finance, the implications of India's CBDC initiative extend beyond its borders, potentially reshaping global payment systems. The Union Minister of State for Finance, Shri Pankaj Chaudhary, revealed that on October 7, 2022, the Reserve Bank of India released a proposal note on Central Bank Digital Currency (CBDC). Two pilot projects using blockchain-based technology are described in the concept note: Digital Rupee-Wholesale (e₹-W) and Digital Rupee-Retail (e₹-R). Launched on November 1, 2022, the bulk trading pilot aims to increase intermediary competitiveness, particularly in the resolution of trades in the secondary market involving sovereign debt. In parallel, on December 1, 2022, the retail banking pilot, known as e₹-R, got underway in a limited user group with eight banks taking part in stages.

The digital asset known as e₳-R is issued across financial institutions for Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions. It is intended to serve as a virtual currency that represents legal money and exhibits characteristics similar to actual cash. Based on input gathered during the continuing trial phases, the RBI intends to progressively broaden the pilot project's scope.

Central Bank Digital Currency Pilot Projects

Central Bank Digital Currency (CBDC), which the Central Bank of India is promoting, may easily perform an essential part in payments made across borders, according to Reserve Bank Governor Shaktikanta Das. The CBDC is going to be expanded to the international financial markets after being implemented as a trial in both the retail and wholesale industries.

CBDC in International Payments

He emphasized that although physical currency will still exist, the CBDC will eventually replace all forms of money worldwide.  

"CBDC is going to be the future currency of the world and it is necessary that every central bank, every country works on CBDC," he stated. He also stated that as worldwide commerce moves more and more around science and technology, CBDCs will play a significant role since they can effectively and affordably speed up payment processing across different countries. Regarding India's foreign exchange reserves, the governor stated that the selection to increase the resources as a safety net and protection versus contagion possibilities was made consciously.

CBDCs' Place in the Transnational Economic Revolution

In certain economies worldwide, having a CBDC internationally accessible could lead to more replacements for foreign currencies rather than the home currencies, which could cause financial aggregates to become volatile and change the mix of instruments of exchange.

CBDC may have benefits related to first-mover savings of scale, and other consequences even in everyday circumstances. If nations with global currencies have established CBDCs, they could strengthen current advantages and disadvantages, including consequences, particularly in terms of revenue. In a similar vein, CBDC might alter the structure of international liquidity while safeguarding asset supply. Additionally, and particularly if imposed abruptly, CBDC may, in certain circumstances, result in significant capital movements and associated repercussions on the foreign exchange rate as well as additional asset prices. Furthermore, nations may encounter difficulties in getting ready for virtual currencies issued by central banks.

The worldwide and international scope of CBDCs accessible to immigrants may become particularly apparent in situations where there is a widespread flight safety concern. In these circumstances, converting a CBDC into a foreign currency would make it possible for capital markets to deleverage more quickly. The elimination of debt challenges could show up as tight finance constraints and abrupt swings in foreign exchange markets if CBDCS expedited its flight from uncertainty.

Deposits of Foreign Exchange and Self-Dependency

Reserve Bank Governor Shaktikanta Das stated "We must rely on ourselves. We must maintain our robust reserves. In order to achieve that goal, we have been amassing quite substantial reserves, and the outside world has come to feel quite confident that India would be able to fulfil its contractual responsibilities to the international community no matter what the obstacles," 

Involvement of RBI in the Currency Market

Given that the trading community was confident that the Reserve Bank of India would be capable of and able to fulfil its contractual responsibilities, the value of the Indian rupee did not decline as dramatically. The RBI governor stated that the RBI does participate in the economy, but that "our engagement operates in two ways," he would not hesitate to acknowledge this.

The Value of Macroeconomic and Budgetary Cooperation

According to RBI Governor Das, the RBI makes purchases and sales of dollars based on the direction in which the financial sector is trending. However, the RBI does not intend to set a certain level for the rupee because it does not consider any specific threshold for the Indian rupee's conversion rate against the US dollar. He also emphasized how crucial it is for both the financial and monetary authorities to work together.

Conclusion

India's CBDC project signals a transformative shift in the global digital finance landscape. Governor Shaktikanta Das envisions CBDCs as the future global currency, emphasizing their role in international payments. The potential impact on financial systems, cross-border transactions, and the need for self-reliance underscore the significance of India's CBDC initiative in shaping the evolving dynamics of the digital economy. As the project progresses, close cooperation between financial and monetary authorities becomes imperative for navigating the challenges and opportunities associated with this groundbreaking venture.

References

• https://economictimes.indiatimes.com/news/economy/policy/central-bank-digital-currency-can-play-important-role-in-cross-border-payment-rbi-guv/articleshow/104706717.cms
• https://www.bis.org/cpmi/publ/d174.pdf
• https://bfsi.economictimes.indiatimes.com/news/fintech/explained-how-rbi-is-leveraging-upi-to-push-the-use-of-retail-cbdc/103591989
• https://www.imf.org/en/News/Articles/2022/02/09/sp020922-the-future-of-money-gearing-up-for-central-bank-digital-currency
• https://www.business-standard.com/economy/news/cbdc-pilot-projects-show-promising-results-rbi-governor-shaktikanta-das-123102601171_1.html