The FIDE (International Chess Federation) has announced a temporary ban on transgender women participating in women's events.
It has stated that it may take up to two years to reach a final verdict on individual cases since "further analysis" is necessary.
However, some players and fans have voiced their disapproval of the decision.
Many sports organisations have been developing policies for transgender athletes, but chess is not physically demanding in the same way that other games are.
However, the FIDE told the BBC that it wished to assess the impact of these measures and not rush the process.
According to the report, "the transgender legislation is rapidly developing in many countries," with many sports organisations also creating their regulations.
To determine how these developments might be applied in the chess world, FIDE intends to keep a close eye on them. For in-depth examinations of such events, a time horizon of two years seems fair to the organisation.
It went on to say that transgender players were still welcome to participate in the events' open divisions.
Professional chess player Yosha Iglesias, who identifies as transgender and holds the FIDE title of chess master, claimed the restriction will cause "unnecessary harm" to transgender and female players.
Iglesias predicted that sadness and suicide attempts would result from dire circumstances.
Grandmaster and two-time US Women's Champion Jennifer Shahade has also spoken out against the FIDE move, calling the policy "ridiculous and dangerous."
"It's obvious they didn't consult with any transgender players in constructing it... I strongly urge FIDE to reverse course on this and start from scratch with better consultants," Ms Shahade said.
Angela Eagle, a member of parliament for the United Kingdom and a former co-champion of the British Girls' Under-18 Chess Championship in 1976, said, "There is no physical advantage in chess unless you believe men are inherently more able to play than women - I spent my chess career being told women's brains were smaller than men's and we shouldn't even be playing."
"This ban is ridiculous and offensive to women," she continued.
FIDE also stated in its policy determination that any championships previously awarded to trans men who are now identifying as women will be nullified.
The international cycling federation made the decision last month to bar transgender women from participating in women's competitions.
On Wednesday, World Aquatics announced that, despite its decision last year to bar transgender athletes from competing in women's elite events, it will introduce a new open category for transgender athletes at this year's Swimming World Cup event in Berlin.
