China bans Gold Farming

NickV · Jul 18, 2009

Well, interesting news:

China has unveiled the first official rule on the use of virtual currency in the trade of real goods and services to limit possible impact on the real financial system. The Chinese government also spelled out the definition of "virtual currency" for the first time, which includes prepaid cards of cybergames, according to a joint announcement from the Ministry of Culture and the Ministry of Commerce Friday. It said:

The virtual currency, which is converted into real money at a certain exchange rate, will only be allowed to trade in virtual goods and services provided by its issuer, not real goods and services.

The ban is primarily aimed at "gold farming," an Internet-age phenomenon in which players in less developed countries collect and sell virtual gold (common to games like World of Warcraft) to wealthier gamers in the developed world. This enables gamers who have the means to buy virtual gold to get ahead in the games without actually having to accomplish the grunt work.

The trading of virtual currency for real cash generates between $200 million and $1 billion annually, according to a 2008 survey conducted by Richard Heeks at the University of Manchester.

The average user will only partially care about this ban. They might be disappointed that they can't buy their way to higher status, but I assume that Tencent and other popular sites will figure out a way to do in-game trades and that eventually the farmers will figure out how to bypass the restrictions.

The ban may scare off smaller shops, but the sophisticated organizations will continue on the same path. It reminds me of Japanese pachinko parlors where you can only win tokens (wink, wink) that you take next door for actual cash.

While I'm not convinced that gold farming is good or bad, there is a very persuasive argument that it's driving economic development in China, and that anything that perpetuates economic stimulus is a good thing.
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Well, I expect places like USFine, and Gold4RS will use loopholes, but over all, this is just a notice to put up here.

Discuss: Is it right for China to outlaw something like this? Where are we headed, if making profit off of virtual goods is against the law?

EpicNova · Jul 18, 2009

NickV said: ↑

Well, interesting news:

Well, I expect places like USFine, and Gold4RS will use loopholes, but over all, this is just a notice to put up here.

Discuss: Is it right for China to outlaw something like this? Where are we headed, if making profit off of virtual goods is against the law?
Click to expand...

They are going to phail.

Phail bad.

neschn · Jul 18, 2009

This is pretty old news. However I would like to see how this turns out.

Bring Me The Horizon · Jul 18, 2009

The companies should just move to Hong Kong or Japan now.

hybanks2000 · Jul 18, 2009

Maybe runescape will be less threatened by RWT now.

Loveable · Jul 19, 2009

This Law will just fail...

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China bans Gold Farming

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China bans Gold Farming

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NickV Float On

EpicNova Apprentice

neschn Guru

Bring Me The Horizon SCAMMER

hybanks2000 Apprentice

Loveable The moment i wake up...