Playing by the rules: Rethinking digital currency, virtual assets, and exchange providers - Using CS2 as a case study
Author Identifier (ORCID)
Abstract
This article critically examines the evolving landscape of digital assets, virtual currencies, and exchange providers in Australia through the lens of Counter-Strike: Global Offensive (CS), a prominent first-person shooter video game developed by Valve Corporation. Central to this analysis is the role of "skins" and other merchandise—cosmetic enhancements that alter the appearance of in-game weapons without affecting gameplay. These digital items, which can be acquired through loot crates or traded in open marketplaces like the Steam Market, exemplify the complexities of digital asset valuation and exchange dynamics. With the valuation of certain cosmetic enhancements within the game reaching up to $1.5 million USD, this phenomenon exposes a significant gap in the current literature on financial regulation, highlighting the urgent need for legal approaches that can accommodate the unique economic realities of high-value digital assets. By using CS as a case study, this study explores the implications of these virtual transactions within the broader context of regulatory frameworks and compares the treatment of these digital assets to other virtual commodities such as cryptocurrencies and non-fungible tokens (NFTs). It investigates how the current definitions and treatments of digital assets under Australian law may be inadequate in capturing the economic realities of such diverse virtual assets. This discourse broadens the perspective on the intersection of gaming, virtual assets, and financial regulation, underscoring the necessity for a comprehensive and comparative legal framework to effectively address the complexities inherent in digital marketplaces.
Keywords
digital assets, virtual currency, skins trading, AML, CTF, money laundering, cryptocurrency, CSGO
Document Type
Book Chapter
Date of Publication
1-9-2025
E-ISSN
978-1-0364-5463-0
Publication Title
Global Perspectives and Emerging Issues in Comparative Law
Publisher
Cambridge Scholars Publishing
School
School of Business and Law
RAS ID
83741
Copyright
subscription content
Recommended Citation
Tai, C. J. (2025). Playing by the rules: Rethinking digital currency, virtual assets, and exchange providers - Using CS2 as a case study. In J. Aston, A. Tomer, & R. Singh (Eds.), Global perspectives and emerging issues in comparative law (pp. 78-99). Cambridge Scholars Publishing. https://www.cambridgescholars.com/product/978-1-0364-5462-3/