Project Lore

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?

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There are a number of Aussies who play World of Warcraft. I was talking to one on vent just last night. However, it seems that at this time, that number is not going to grow. Australian law dictates that no game can be traded or sold that is not classified by the Australian Classification Board as appropriate for a 15-year-old. WoW, along with many other MMORPGs, did not apply for classification in Australia due to its lack of a single player component, and thus fits into that category. As I was talking with (and playing WoW with) a player in Australia just a few hours ago, it doesn't look like accounts are being canceled or banned if they are from Down Under. With the law, though, the sale of new copies of World of Warcraft is likely going to stop in Australia for the time being. According to an article covering the controversy on IGN, penalties for selling unclassified games "range from $1100 to $11,000 for individuals and/or 12 months' imprisonment, and approximately double those figures for corporations." Blizzard will probably apply for classification as soon as possible to avoid losing any sales in Australia, though I feel bad for anyone who can't get their fix of Warcraft due to pesky laws. Any Aussies able to chime in?

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