Law, regulation and taxation
Awakening to the idea that virtual goods can have real value, some governments have taken action in this area.
[edit] Australia
In 2006 a spokesperson for the Australian Government stated normal earned income rules also apply to income from the sale of virtual goods.[20]
[edit] China
The Chinese State banned using virtual currency to buy real-world items in 2009 but not the reverse.[21]
[edit] Japan
In response to increases in gold farming, in 2006 the Japanese Government urged the industry to self-regulate as well as vowing to investigate this species of fraud.[22]
[edit] Korea
A Korean high court's 2010 ruling means that exchanging virtual currency for real money is legal in the country, although subject to taxation.[23][24]
[edit] US
A US Congressional committee investigated taxation of virtual assets and incomes in 2006,[25][26] and the IRS has, in its National Taxpayer Advocate's 2008 Annual Report to Congress, expressed concern that virtual worlds are a growing source of tax noncompliance.[27]
