Chinese Gold Farming Hits Potential Drought
As the world economy was spiraling downward, some creative Chinese gamers were making a living by selling Westerners their virtual gold for real money in online games like World of Warcraft. But the online gold rush may be over in China, as officials seek to ban the practice by releasing the first regulations on virtual currency.
According to the new regulations, players can buy prepaid cards in real dollars that are converted to virtual currency at a specific exchange rate. The currency can only be used in the trade of virtual and not real goods and services.
“Gold farming” is an Internet trend in which gamers in less developed countries collect virtual gold and sell it to wealthier players in massively multi-player online role-playing games like World of Warcraft and Everquest.
The trading of virtual for real money brought in between $200 million and $1 billion last year. Gaming experts believe that those engaged in the practice will find a way around the regulations, though it may shut down smaller shops and independent gold farmers.
(link)
By RMJ on 08-07-2009
Comment by wow accounts
July 9th, 2009 at 3:51 am
Correct me in I'm wrong, but from my understanding of the law that was passed, it's the other way around – meaning it doesn't ban gold farming. What the law aims to eradicate is the use of virtual currency (China QQ coins) to purchase real world items. I think this is the more pressing problem for China since the government doesn't have stake in the virtual currency; so theoretically, the government loses out on its potential earnings. On the other hand, if real money was used to buy virtual items, then there is an inflow of REAL money into the government. I don't think China would want to stop money, more importantly, American dollars or euros from going in to their economy.
Comment by pacat
July 10th, 2009 at 3:16 pm
Don't know about this virtual buying, but if I am paying cash I want the real thing. This goes along with putting food in a grave so you have something to nibble on on your long journey
Comment by wowrealmoney
July 19th, 2009 at 2:32 pm
It's true "You Can't Take It With You!"
Comment by Gilfinder
August 4th, 2009 at 1:47 am
I can attest that both volume and sales of FFXI Gil has fallen immensely over the last month. It has absolutely decreased the amount of virtual currency available in the open market.