June 30, 2009 - 2:23am
The Ministry of Commerce and the Ministry of Culture released new regulations that forbid use of virtual cash for real-world trade. Virtual currency can now only be used for virtual goods and services that are provided by the issuers of the virtual currency.
According to the Ministry of Commerce, those caught using virtual money for gambling will be punished by public security authorities. Besides, it will tighten supervision of money laundering using virtual money and "other illegal online activities."
China`s government has fingered virtual money as a source of under-the-table payments, laundering, theft and fraud. In particular are "QQ coins" issued by Tencent.com, one of the country's top internet community operators with over 220 million users.
QQ coins were originally intended to be used to buy Tencent.com services such as electronic greeting cards, avatars, virtual game chips, and Tencent software. But many users began trading the currency amongst themselves and in exchange for other goods, services and real yuan, explains China`s government-run media outlet Xinhua in a 2006 report. Trade in virtual currency exceeded several billion yuan last year and rises at an average rate of 15 to 20 per cent annually.
In a statement following the decree, Tencent said it supported the new rule and would work with authorities to combat online crimes.
According to the Ministry of Commerce, those caught using virtual money for gambling will be punished by public security authorities. Besides, it will tighten supervision of money laundering using virtual money and "other illegal online activities."
China`s government has fingered virtual money as a source of under-the-table payments, laundering, theft and fraud. In particular are "QQ coins" issued by Tencent.com, one of the country's top internet community operators with over 220 million users.
QQ coins were originally intended to be used to buy Tencent.com services such as electronic greeting cards, avatars, virtual game chips, and Tencent software. But many users began trading the currency amongst themselves and in exchange for other goods, services and real yuan, explains China`s government-run media outlet Xinhua in a 2006 report. Trade in virtual currency exceeded several billion yuan last year and rises at an average rate of 15 to 20 per cent annually.
In a statement following the decree, Tencent said it supported the new rule and would work with authorities to combat online crimes.
Comments
What about gold farming and RMT in online games? As we all know, there are a lot of Chinese WoW accounts that are used for gold farming and that most Asian free-to-play MMOs survive on microtransactions. Would this mean the end to those activities as well?