China Outlaws Gold Farming
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Amatera on Monday, June 29, 2009 - 29 Comments Tags: QQ coins, banned, blizzard, china, global economy, gold farming, gold selling, government, information week, law, ministry of commerce, ministry of culture, susan express, tencent, virtual currency
Amatera on Monday, June 29, 2009 - 29 Comments Tags: QQ coins, banned, blizzard, china, global economy, gold farming, gold selling, government, information week, law, ministry of commerce, ministry of culture, susan express, tencent, virtual currency
According to a government-issued press release, China's Ministry of Culture and Ministry of Commerce (that's right, they've got two Ministries on the job!) have filed an injunction against anybody who would sell or trade virtual currency for real goods or services. This comes as the country's first official ruling on the matter, which defines what does and does not constitute virtual currency (game cards count, apparently), and cites concerns of gambling and illicit trade using the the funny money as a go-between.
Now, your average gold seller probably spends at least half his day in a tiny room filled with cigarette smoke and the ambient buzz of a dozen or so computers running non-stop, farming up mobs and resources just so he can earn his meager paycheck. He's the computer-age equivalent of your average "working joe." It almost makes me feel sorry for
I wonder if Cash4Gold would accept all of my virtual WoW money?
those guys, but hopefully the enaction of this new law will curtail the more malicious brand of online crooks: those that hack and ravage player accounts. Even if you haven't experienced it yourself, we almost all know someone who's fallen victim to the practice, and we understand how much of a pain in the butt it can be to get things squared away again.
So, does this mean bye-bye Susan Express? As one of the more noted gold-selling sites, perhaps, as the Chinese government no doubt has their eyes on certain firms. But, as with just about any illegal trade, it will be all but impossible to completely stamp out. Gold farmers will go further underground or move their operations to other countries that have yet to ban the practice, though I believe that the law works both ways, meaning that Chinese players could be indicted for buying, as well as selling.
The press release cites "QQ Coins" (yes, they're really called that) from Tencent.com as the most often-traded virtual currency in the country. Originally, they were used to purchase clothes and accessories for online avatars, but have come to be used by a variety of online stores seeking to capitalize on the incredible popularity of the associated online/networking services provided by Tencent. The new law makes exceptions for legitimate content providers, and the company has stated their intent to cooperate with the government in stopping online theft (just look at their "vision:" To be the most respected internet company).
According to tech-related business site Information Week, the gold-selling business currently bring in "between $200 million and $1 billion annually." In addition to simply curtailing crime, the regulation seems apt to prevent the virtual trade from becoming too much of a burden on China's real-world economy in the future.
I, for one, am glad to see China taking a stance on the issue, especially since the country is purported to house at least 80% of gold-selling operations worldwide. I can guess what most of you think of this development, at least from a WoW player's standpoint.
But what about the global economy? These illicit operations may be a thorn in the side of real-world governments and creators of virtual goods (like Blizzard), but is stunting the growthy of a new economic avenue worth it in the long run? Just as digital distribution of products like movies or games is becoming a steady alternative to buying physical copies from the store, is it possible for money to effectively be traded in a similar fashion?
Now, your average gold seller probably spends at least half his day in a tiny room filled with cigarette smoke and the ambient buzz of a dozen or so computers running non-stop, farming up mobs and resources just so he can earn his meager paycheck. He's the computer-age equivalent of your average "working joe." It almost makes me feel sorry for
I wonder if Cash4Gold would accept all of my virtual WoW money?those guys, but hopefully the enaction of this new law will curtail the more malicious brand of online crooks: those that hack and ravage player accounts. Even if you haven't experienced it yourself, we almost all know someone who's fallen victim to the practice, and we understand how much of a pain in the butt it can be to get things squared away again.
So, does this mean bye-bye Susan Express? As one of the more noted gold-selling sites, perhaps, as the Chinese government no doubt has their eyes on certain firms. But, as with just about any illegal trade, it will be all but impossible to completely stamp out. Gold farmers will go further underground or move their operations to other countries that have yet to ban the practice, though I believe that the law works both ways, meaning that Chinese players could be indicted for buying, as well as selling.
The press release cites "QQ Coins" (yes, they're really called that) from Tencent.com as the most often-traded virtual currency in the country. Originally, they were used to purchase clothes and accessories for online avatars, but have come to be used by a variety of online stores seeking to capitalize on the incredible popularity of the associated online/networking services provided by Tencent. The new law makes exceptions for legitimate content providers, and the company has stated their intent to cooperate with the government in stopping online theft (just look at their "vision:" To be the most respected internet company).
According to tech-related business site Information Week, the gold-selling business currently bring in "between $200 million and $1 billion annually." In addition to simply curtailing crime, the regulation seems apt to prevent the virtual trade from becoming too much of a burden on China's real-world economy in the future.
I, for one, am glad to see China taking a stance on the issue, especially since the country is purported to house at least 80% of gold-selling operations worldwide. I can guess what most of you think of this development, at least from a WoW player's standpoint.
But what about the global economy? These illicit operations may be a thorn in the side of real-world governments and creators of virtual goods (like Blizzard), but is stunting the growthy of a new economic avenue worth it in the long run? Just as digital distribution of products like movies or games is becoming a steady alternative to buying physical copies from the store, is it possible for money to effectively be traded in a similar fashion?
Reader Comments (29)
I don't think you read the press release closely enough. They aren't going after gold farmers, but are going after places that use in game, or virtual, money to buy real good and services.
In other words, they are trying to stop people from bypassing local sales tax laws. they are not the least bit concerned about the economy or gold in WoW, but their own economy. Nothing in that press release even hints at them going after gold farmers.
@Zarinn
When you pay cash for gold, that's trading actual money for virtual goods. No, the Chinese government isn't going to suddenly send its goons out onto WoW servers hunting down anyone attempting to farm gold, but it will go after the businesses that facilitate such things.
You're right in that this is not a measure specifically aimed at WoW or making the experience better for any of us players, but they *are* concerned about it insomuch as it has the possibility of encroaching on their real-world economy.
As the press release states, Tencent's virtual currency is the most popular, but WoW gold is pretty high up on the list.
I'm not convinced. The reason they are going after Tencent's currency is that it is being used in place of their own actual currency. That is not the case for WoW gold. In fact, the gold farming opertations have a positive impact on their economy with no negative effects like bypassing sales tax and such, so it is pretty much exactly the opposite to Tencent.
While that press release is the only mention of this I have seen, there is nothing in there that even hints that they are going after gold farmers in any way. Any thoughts along those lines are just wishful thinking from those reading it.
I agree with Zarinn.
The article's quote from the Commerce Ministry's circular states that virtual currency is exchanged for real currency and makes no mention of outlawing this activity. All it says is that said virtual currency can not be used to purchase real goods and services, and anything in WoW would likely be considered a virtual good/service.
To me, the argument that paying cash for gold is trading actual money for virtual goods is neither here nor there; China is not outlawing that, they are outlawing the reverse.