Comments on: Um… This Is Kinda A Big Deal

By: geldonyetich

geldonyetich — Mon, 06 Jul 2009 06:09:06 +0000

Technically, if it’s about prohibiting cashing virtual items out for cash, doesn’t that effect real money traders directly? Their bread and butter is accruing the virtual to sell for the real.

By: Mr. Poppinfresh

Mr. Poppinfresh — Mon, 06 Jul 2009 00:35:17 +0000

To repost what I already told Scott anyway:

1) The fact that it is a joint announcement from the Ministries of Culture (very important) and Commerice (pretty important), signals that this is a Big Deal.

2) The fact that TenCent is specifically mentioned means that the reporter writing the story was likely (not 100% obviously, but very likely) fed their name specifically, which means it is a shot across their bow from Culture.

3) Since this is only about output transactions and not input ones (i.e., buying things ingame is still OK, but taking virtual cash out of the system for real world money), it is likely more about money laundering and currency control than anything else, hence the involvement of Commerce. Culture has enough clout in the online-game sphere to have taken care of it alone if need be; this ruling has wider implications.

4) In short, if you are planning a Chinese-language game with RMT in it, just don’t plan on letting players ‘cash out’ in some way and you should be fine. This is about bigger fish than yours.

By: Alex

Alex — Wed, 01 Jul 2009 21:16:35 +0000

It is worth noting that gambling with virtual currency is also illegal. No more outings to the slime race track in Lineage.

By: Arnold Hendrick

Arnold Hendrick — Wed, 01 Jul 2009 02:21:50 +0000

I believe this law is designed to prevent virtual currencies (such as TenCent’s QQ Coins) from competing with China’s official currency, the Yuan. China’s government controls the Yuan’s exchange rate, resulting in Chinese goods being cheap in other countries, while other countries goods are relatively expensive in China. The Chinese government fears that a commonly used virtual currency might threaten that.

Also remember that Chinese law enforcement is ALWAYS selective. National laws are regularly ignored by regional governments if it goes against their local interest. As long as gold farmers are selling virtual gold for real world dollars to foreigners, I expect the Chinese will look the other way and let the local industry flourish. What the Chinese are trying to prevent is a future where people use QQ Coins to buy lunch, get a taxi ride or have their hair styled – because QQ Coins are worth more dollars than the Yuan is!

By: Andrew Crystall

Andrew Crystall — Tue, 30 Jun 2009 23:50:20 +0000

No, it’s Tencent acting to protect their interests. That it bans a lot of business models, including all pre-loaded cards (given they’re also company scrip in the same way) for, say, trains… well, no, Tencent /don’t/ care.

By: We Fly Spitfires

We Fly Spitfires — Tue, 30 Jun 2009 09:10:43 +0000

@Brian ‘Psychochild’ Green Yeah, I agree. I'm not sure this is actually aimed at the WoW gold farming peeps.

By: Kifix

Kifix — Tue, 30 Jun 2009 07:28:33 +0000

As i understand it, it doesn’t change anything in games, you can still buy virtual goods and services.

By: Andrew Crystall

Andrew Crystall — Tue, 30 Jun 2009 02:58:53 +0000

@Mann – That’s why I said /legal/ difference. Private barter systems involving tokens are only illegal in specific situations, for instance involving gambling in much of America and in payment for work in the UK.

Brian – I disagree. Watch Eve China, where timecode trading has previously stamped on most other RMT, go back to goldseller spam after this.

By: Robin Kestrel

Robin Kestrel — Tue, 30 Jun 2009 01:35:33 +0000

Tesh :
For example, “macks” have supplanted cigarettes in prison “economies”. People always find a way to make trade happen.

Heh, interesting… http://online.wsj.com/article/SB122290720439096481.html

By: Tesh

Tesh — Tue, 30 Jun 2009 00:47:50 +0000

Brian ‘Psychochild’ Green : ...I think this is more to prevent competing currencies. Tencent’s QQ coins were being used widely outside the game as a form of exchange. ...

I agree. Though, the policy geek and economist in me occasionally wonder about alternate currencies anyway. The statism inherent in protecting a currency tends to ignore what actually happens in the "real" economy, where people are trying to get by and make a buck, rather than protect political power. It's a dangerous road, and you can never really stop barter anyway. People will just find new ways to do business, and new ways to keep the State from taking a bite out if it. (For example, "macks" have supplanted cigarettes in prison "economies". People always find a way to make trade happen.)