China bans gold farming

Trade worth hundreds of millions of dollars

China bans gold farming View more images

30 June 2009 8:56 GMT / By Duncan Geere

The Chinese government, amidst a crackdown on shady websites, has declared that virtual currency cannot be traded for real goods or services. It could, if fully enforced, bring an end to the practice of "gold farming" in online games.

Gold farming is particularly prevalent in World of Warcraft, Blizzard's smash hit massively-multiplayer online (MMO) game with more than 11.5 million subscribers worldwide, but it affects almost all online games in some form or another.

Buying the in-game currency from an external website is, in most MMOs, banned by the company behind it, but it still occurs, with the trade in China exceeding several billion Yuan each year (about 1% of the country's economy). 1 billion Yuan is worth $146 million at current exchange rates.

In-game gear is not considered as "virtual currency", so the sale of a pair of "Valorous Dreamwalker Handguards", for example, would still be permitted for real cash, as would the sale of virtual crafting resources like stone, metal and wood.

Research from the University of Manchester suggests that between 80 and 85% of all gold farmers are located in China. The dent to the country's economy will likely be insignificant, as farmers ignore the ban or shift to legal methods, but the boom to the economies online games should be considerable and positive.

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Comments

  • I do not see this happening... Seeing as how the chinese gold farming operations work, it is nearly impossible for China to pull this off. Sites such as www.MOGS.com are USA based and the games they sell are USA based, granted a majority of the supply there is from players in the USA some comes from China gold farms... if China is going to ban they are going to focus on domestic games to China, however the level of corruption in China at a local level is insane so for the State wide government to do this they have to get through the corrupt local government... All I can say is good luck! Posted by jim, United States
  • The interpretation that the new regulation is about gold farming has spread like wildfire. Unfortunately, it is not correct – the regulation is about the Chinese government staying in control of currency movements within the country. It’s not targetted at gold farming, and unlikely to have much of an impact on gold farming.

    More analysis and details at the ICTs for Development blog: http://ict4dblog.wordpress.com/2009/07/01/china-bans-gold-farming-er-but-in-fact-it-hasnt/
    Posted by Toby Jacobs, UK
  • This will definitely result to loss of jobs. The We experienced the recession already, this looks another form of it. Many are thankful of the jobs made out of the gaming industry. What will happen to these people just like the student featured on an article.
    http://www.articlecounty.com/index.php?page=article&article_id=445816
    Posted by Jessie, US
  • I`m currently building my own gaming pc so i can play world of warcraft in its full gloring, i have a budget of under £400 but i think i have found the best system for the budget i have, you can check out my progress on my squidoo lens. Posted by dave, UK
  • As a gamer, I was alarmed about this news. I thought WoW is included and it's a good thing that I read an article which clearly explained that China is after the banning of QQ coins. Might as well share it with you:
    http://www.pizzahut.com.ph/2007/menu.php
    Posted by Totskietz, US

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