China Bans Gold Farming

[Cairenn]

Trading virtual goods for real money has been banned in China, putting hundreds of millions of dollars in economic activity at risk.

By Thomas Claburn
InformationWeek
June 29, 2009 02:20 PM

In addition to its ongoing crackdown on Internet p0rn, the Chinese government has declared that virtual currency cannot be traded for real goods or services. <snip> The Chinese government estimates that trade in virtual currency exceeded several billion yuan last year, a figure that it claims has been growing at a rate of 20% annually. One billion yuan is currently equal to about $146 million. The ruling is likely to affect many of the more than 300 million Internet users in China, as well as those in other countries involved in virtual currency trading. In the context of online role playing games like World of Warcraft, virtual currency trading is often called gold farming. <snip> The trading of virtual currency for real cash employs hundreds of thousands of people worldwide and generates between $200 million and $1 billion annually, according to a 2008 survey conducted by Richard Heeks at the University of Manchester. He estimates that between 80% and 85% of gold farmers are based in China. "[M]any online games have a virtual economy and an in-game currency," he states in his survey. "Gold farmers can play in-game to make some currency. They then sell that for real money -- typically via a Web site and using the PayPal payment system -- to other players of the game." Game companies typically forbid gold farming but committed virtual currency traders find ways around such rules. Some game companies have recognized the futility of trying to ban the practice and have built virtual commerce into their game infrastructure.

Full article here.

[Cralor]

*singing*

Clap clap clap, clap yo hands!

[voodoodad]

Wow. I had no idea that their economy was gonna take such a massive hit. I did get a small chuckle out of the quote from one of the bigger gold farmers out there. "We resolutely support this action!" I'll bet they do! I can't imagine they want any tanks rolling into their reception area!

[ravagernl]

Ha-ha!

If there is any country capable of tracking these kind of illegal activities, it is China (I'm referencing to censorship).

[Recluse]

Well, it's good news, but aren't most gold farmers from other Asian countries? Either way, it's a HUGE step forward for gamers.

[us2006027321]

I don't like a majority of China's policies. I am happy to add this to my list of exceptions to my distaste.

Thank you, China, for doing something right.

Hopefully, this will begin a trend in other Asian nations where gold farmers abound, eh?

[Syxx]

And the party ended. lol
It is! It isn't! It is! It isn't! Ow my head!

[us2006027321]

Originally Posted by Syxx And the party ended. lol It is! It isn't! It is! It isn't! Ow my head!

Blast you, Chinese legislation!! Perhaps it was too much to hope that China would give up leeching off two American economies at once.