China Bans Trading in Virtual Currency, 'Gold Farming'

Authored by Mark Hefflinger on June 30, 2009 - 6:47am.

Shanghai, China - The Chinese government has announced new limits on the use of virtual currency, in a move intended in part to curtail the practice of "gold farming," where people in poorer countries play online games and collect virtual gold which is then sold to rich players in other countries.

The rules were issued by the Ministry of Commerce and Ministry of Culture, and motivated by fears that virtual currencies -- trading in which last year in China totaled nearly $2 billion, according to the China Internet Network Information Center -- could affect the country's real-world economy.

The government established that virtual currency may no longer be exchanged for real-world goods, and that minors may not buy virtual money.

The New York Times reported that the new rules are unlikely to hamper larger pubic gaming companies in China, as gold farming operations are usually found on smaller sites.

Related Links:
http://snipurl.com/l6ta1 (Chinese government statement)

http://www.nytimes.com/2009/07/01/technology/internet/01yuan.html

http://news.cnet.com/8301-13846_3-10275180-62.html