Chinese government bans citizens from gold farming.
China’s stereotyped pastime of ‘farming’ virtual currency for real money is now considered illegal in the country. Faux cash is no longer to be switched for the real stuff, China’s overlords today announcing this restriction in a bid to curb the practice’s “possible impact on the real financial system.”
As you might imagine, however, this impact is already quite real. According to unnamed “media reports,” the announcement states that the virtual currency market is annually growing by twenty percent. Just last year, it estimates that it raked in several billion yuan, one billion yuan being equal to roughly $181 million Australian. This amount is considered “too small to shake the nation’s entire financial system,” but the Chinese government would rather not give it a chance.
“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 Chinese government declares. This is a bid to steer clear of any form of gambling or illicit trade to which it believes the trading of virtual currency played host.
It’ll be interesting to see how this will affect purchases through digital distribution services that first require the purchase of their own currency. Are games considered ‘real’ enough? Judging by the above statement, permitted virtual items presumably include fancy new outfits for one’s digital avatar. It may not be obvious on the surface, but these outfits – or even the avatars, themselves – could potentially be traded and therefore act as a form of digital currency in themselves.
Ultimately, though, will this mean less ‘cheap gold’ spam littering our online games? Well, considering there’s clearly a market here, I wouldn’t hold my breath.
Supporting our habits:
2009.06.30 17:05
The odds of this having any impact on the kind of gold selling we encounter in the west seems pretty minimal. The statement seems to be highly focused internally on the reduction of virtual currency being used for money laundering and other illicit means. The mention of pre-paid cards also seems to indicate that this is an extension of the already strict rules put in place to manage time spent in MMOs.
Considering it doesn't even touch on the import/export market then I don't think gold farming for foreigners is in any way the target here.
2009.07.02 08:51
This blog actually explains the real situation pretty well.
2009.07.02 22:13
Calling bullshit on misinformation is great and all, but this guy is contradicting himself and having a grand old time spouting his own flavour of ignorance. From that piece:
That's a pretty fruity definition of gold farming. It's the reverse, of course – the gold farmers use virtual currency to buy real money. This is the very same 'mirror image' his argument rests on.
The spirit of the restriction is clearly to reduce the versatility of more popularised virtual currencies that various retailers have begun to accept, such as Tencent's 'QQ coins,' but the announcement absolutely covers the very definition of gold farming. Considering games such as World of Warcraft offer a virtual currency with real world value – and is just as untraceable as QQ coins – you can ultimately buy real things with it. It sure wouldn't surprise me if retailers started accepting WoW gold, and this includes participating in those illicit activities the Chinese government is trying to suppress.
2009.07.03 13:28
The flaw in that argument is that we aren't talking about WoW gold as an even usable currency in China beyond the brokerage between farmers and customers (which is the only thing that seems in breach of what is said in the original article). The gold is farmed on the US/EU servers - it is inherently an import business in China. It is of no value on the Chinese WoW servers.
It seems pretty clear that this is an internally targeted move - if anything the value of the gold farming market to the Chinese economy is probably not worth clamping down on and watching that money move to eastern europe, or wherever the next gold farming hotspot would be.
Anonymous Gibbon
2009.07.29 17:34
Selling 1000 gold for AU$2.95
Anonymous Gibbon
2009.08.05 23:37
worry any more about paying I can still hardly believe the results I’ve been getting by following Jon’s MGB methods: - no more farming, no more grinding, no more dailies… I just have fun! - I can always buy the best enchants I need for the gear that drops during raids - I’ve got all the best flying mounts that I never thought I’d be able to afford - I never worry any more about paying for the potions and flasks I need to get ready for my raid nights - gems, flasks, good players good players selection [link removed] WOW Gold find good [link neutered] Logo Design online. [link redacted] wow or and [link nuked] WoW gold kaufen and [link castrated] WoW oro and [link shredded] WOW soldi online service.potions, enchants, glyphs… I’ve got all the best buffs for my gear By focusing on a small number of high-profit items to trade in the auction house, the MGB system lets you make enormous amounts of gold in very little time.
2009.08.06 01:30
Your balls, sir. They are sheer.