Shrapnel Becomes First Foreign Web3 Game on China’s RWA Chain

US-developed web3 video game Shrapnel has been granted approval to operate on China’s state-backed RWA Copyright Chain, allowing the game to distribute tokenised in-game items under Chinese law and making it the first foreign blockchain-based title to achieve this level of legal recognition in the country.

By obtaining this licence, Shrapnel gains access to one of the world’s largest gaming markets—worth over $40 billion—under full regulatory compliance.

The game’s Chinese launch will involve local partnerships, new distribution channels, and integration with the country’s asset verification systems.

What can we expect from this latest development?

The Chinese version of Shrapnel will differ from its global counterpart in several ways. A localised game launcher will be developed for distribution within China, and digital assets will be issued and tracked via the RWA Copyright Chain—a state-approved blockchain system designed to handle the legal rights of digital goods.

In-game assets such as skins, equipment, and cosmetics will be legally recognised as digital property within the Chinese jurisdiction. These items can be bought, sold, and traded through a new marketplace that operates under national guidelines.

The rollout will be supported by Lingjing Game Labs, the gaming division of People’s Daily, the official newspaper of the Chinese Communist Party. This partnership will handle localisation, asset minting, compliance, and trading systems.

Why is this significant?

This marks the first time a foreign web3 game has been formally licensed to issue tokenised in-game assets in China under government oversight, reflecting a notable shift in China’s approach to blockchain technologies, which have typically been tightly regulated or restricted—especially when linked to decentralised finance or cryptocurrencies.

By working within China’s regulatory framework, Shrapnel has effectively created a model for how other foreign digital products might gain access to the market. It also demonstrates the Chinese government’s interest in supporting blockchain applications that align with national priorities, such as IP protection and digital asset tracking.

Although the move does not suggest broader policy liberalisation, it highlights a pathway for compliant cross-border collaboration in the digital economy.