China Bans Gold Farming

China has imposed a new law declaring that virtual currency can no longer be exchanged for real goods and services, a decision that will effectively ban the practice of gold farming.

The "virtual money trade" was worth several billion yuan last year [one billion yuan is worth $146 million], according to a statement by the Ministry of Commerce of the People's Republic of China, and has experienced an annual growth rate of roughly 20 percent.

"The virtual currency, which is converted into real money at a certain exchange rate, will only be allowed to trade in virtual goods and services provided by its issuer, not real goods and services," the Chinese government declared. The new rules also forbid the purchase of virtual currency by minors, while using it for gambling purposes is punishable by "public security authorities."

An estimated 80 to 85 percent of all gold farmers are based in China, generating revenues of $200 million to $1 billion annually, according to Richard Heeks of the University of Manchester. And while most game companies have rules against it, the practice remains widespread.

Chinese "online industry expert" Cui Ran said the government was attempting to "nip illegal online activities in the bud" by implementing legislation while it was still practical to do so. Despite the large amounts of money involved, he said the volume of trading is still too small to affect the Chinese economy, but as the industry grew it would eventually begin to have an impact.

Source: Information Week, via GamePolitics

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Dang, now where am I going to run my future gold-farming operations?

There is something so ruthlessly efficient about china sometimes, i love it.

Well, thats one less economic string that ties the US to china right?

But--but my Traveler's Tundra Mammoth!

:(

Edit: I feel the need to clarify that this is a joke. Just a strange feeling...

Will this end the countless amount of spam and crappy adverts i see and receive every single day?!

And hats off to China for doing this, like my father told me "You want something, you have to earn it"

They didn't ban gold farming or gold selling, they banned gambling with it and forbid minors from buying it. They also prevented people from trading in game money for real world toys. Nothing in there about not buying or selling as an adult though.

Wow, something useful out of this internet block.

Ranooth:
And hats off to China for doing this, like my father told me "You want something, you have to earn it"

You earn money, which you trade for stuff. If trading money for goods isn't earning, by your (or your father's) logic, you would have had to build your own house, car, and dog in order to have earned them.

CantFaketheFunk:
But--but my Traveler's Tundra Mammoth!

:(

If all else fails you can roll a level one Draenei woman and get gold that way?
I hear you can farm about 250 gold an hour that way, more if you're really good.
I can't believe I said that and I hate myself.

I sort of get the thought of an armed Policeman kicking down a door and discovering a room full of goldfarmers, yelling: "Your account has been suspended!" before opening fire.

Krakyn:

Ranooth:
And hats off to China for doing this, like my father told me "You want something, you have to earn it"

You earn money, which you trade for stuff. If trading money for goods isn't earning, by your (or your father's) logic, you would have had to build your own house, car, and dog in order to have earned them.

And you don't even get achievements.

I've been thinking of getting back into WoW before it dies. This is one more thing that suggests that I should.

AmrasCalmacil:

CantFaketheFunk:
But--but my Traveler's Tundra Mammoth!

:(

If all else fails you can roll a level one Draenei woman and get gold that way?
I hear you can farm about 250 gold an hour that way, more if you're really good.
I can't believe I said that and I hate myself.

I sort of get the thought of an armed Policeman kicking down a door and discovering a room full of goldfarmers, yelling: "Your account has been suspended!" before opening fire.

That's nightelves, no one wants face tentacles or the tail.

Lamppenkeyboard:
I've been thinking of getting back into WoW before it dies. This is one more thing that suggests that I should.

You're 2 expansions too late then.

There's something just not right with the phrase "virtual money trade" - I just cant see it as a company or something.. it's just too bizare a business. Physical, valuable money for imaginary money in a game.. good trade...

AmrasCalmacil:

I sort of get the thought of an armed Policeman kicking down a door and discovering a room full of goldfarmers, yelling: "Your account has been suspended!" before opening fire.

Thats blizzard's plan for 2010, they're legal teams have already given them the right to storm houses of anyone who violates the terms of uses agreement and terminate them, they're just working on hiring the armed goons now.

But, now wows economy will screech to a halt. Don't they realise what they've done! It will go into a depression not seen since the 1930's. (Note, I only use that as an example because I can't think of any major depressions in WOW's history.)

savandicus:

Thats blizzard's plan for 2010, they're legal teams have already given them the right to storm houses of anyone who violates the terms of uses agreement and terminate them, they're just working on hiring the armed goons now.

I can see it now, Chris Metzen in full swat gear wielding two custom made, actual factual Banhammers storming into people's houses and screaming "PERMA-BAN!!".

Aww, I like stealing the mined resources from the Chinese farmers in Eve. The guard ship opens fire on me, I destroy it with my better ship/skills.... It's a fun game.

HOOOOOORAY!

Now wow wont be spammed by goldfarmers ALL DAMN DAY.

Of course, Im not sure why im celebrating, I gave up WoW 4 months ago

CantFaketheFunk:
But--but my Traveler's Tundra Mammoth!

:(

work for it
but banned gold farming? atleast it will lower chat/forum spam for gold sites

I'm interested in finding out how the state plans to enforce this.

I just don't see this having a huge impact anytime soon, because it seems very easy to duck if you're a gold seller.

I think it's still up to the game manufacturers to provide the most effective means of preventing spam and killing seller accounts.

Seriously, wow.
That's a very bold and informed move from China there.

I'll be damned before i let my gold farming asian go home..

YES!!! YES!!! YES YES YES YES YESYESYESYESYESYES YEEEEEESSS!!!

*parties until the break of dawn*

The_root_of_all_evil:
Seriously, wow.

OMG LOL I see what you did there.

Awesome! I never thought I'd be saying this, but:

Ya done good, China.

asinann:
They didn't ban gold farming or gold selling, they banned gambling with it and forbid minors from buying it. They also prevented people from trading in game money for real world toys. Nothing in there about not buying or selling as an adult though.

article:

"The virtual currency, which is converted into real money at a certain exchange rate, will only be allowed to trade in virtual goods and services provided by its issuer, not real goods and services,"

Virtual currency is now only exchangeable for virtual goods, not real goods/services. IE you can't exchange WoW gold for real money.

Hats off to china, the censorship actually hit onto something useful for once.

So this is how China's economy collapses.

Link Kadeshi:
Aww, I like stealing the mined resources from the Chinese farmers in Eve. The guard ship opens fire on me, I destroy it with my better ship/skills.... It's a fun game.

I know someone who would do this to the farmers in WoW, but your right, it IS funny.

This will reduce spam for a little while, but now people outside of China will be able to move in and start the spamming all over again.

guardian001:

asinann:
They didn't ban gold farming or gold selling, they banned gambling with it and forbid minors from buying it. They also prevented people from trading in game money for real world toys. Nothing in there about not buying or selling as an adult though.

article:

"The virtual currency, which is converted into real money at a certain exchange rate, will only be allowed to trade in virtual goods and services provided by its issuer, not real goods and services,"

Virtual currency is now only exchangeable for virtual goods, not real goods/services. IE you can't exchange WoW gold for real money.

Hats off to china, the censorship actually hit onto something useful for once.

Notice how it said "which is coverted into real money at a certain exchange rate"?

That means it can still be bought and sold, but can only be used after purchase for things in game. Otherwise the companies that sell their own currency wouldn't be able to sell their own currency any more either. They aren't going to kill a multi-billion dollar industry just because a few corporations ask them to, it's bloody China. The country that just told the largest computer manufacturers in the world that the Chinese firewall will come pre-installed or they can't be sold there, and stuck to it.

asinann:

guardian001:
-Snip-

Notice how it said "which is coverted into real money at a certain exchange rate"?

That means it can still be bought and sold, but can only be used after purchase for things in game. Otherwise the companies that sell their own currency wouldn't be able to sell their own currency any more either. They aren't going to kill a multi-billion dollar industry just because a few corporations ask them to, it's bloody China. The country that just told the largest computer manufacturers in the world that the Chinese firewall will come pre-installed or they can't be sold there, and stuck to it.

That refers to currently. it is being converted at an exchange rate, this will stop that exchange rate.

Before:
X fake $ = Y Real $
Gold farming = profitable

After:
Infinite fake $ = 0 real $
Gold farming = gone

The only reason the government of China is doing this is so that Virtual currency will not be exchangeable for Real currency. They are stopping the exchange rate. The virtual currency will be redeemable for virtual goods provided by the company who controls the virtual currency, but will not be redeemable for Actual money by outside corporations.

The company controlling the currency may (not sure about this) still be able to exchange it for real money, but outside corporations (the gold farmers) will not.

So it ends gold farming. See how that works?

xmetatr0nx:
There is something so ruthlessly efficient about china sometimes, i love it.

More like ruthlessly controlling

Isn't this bad for their economy, though?

Cortheya:

xmetatr0nx:
There is something so ruthlessly efficient about china sometimes, i love it.

More like ruthlessly controlling

Hey, sometimes that's the best way.