Is Gold Farming Really Banned? Confusion Over China's New Virtual Currency Rules

July 1, 2009 -

Earlier this week GamePolitics covered a story by Information Week which reported that new Chinese regulations on virtual currency would outlaw gold farming.

But there appears to be confusion about whether the practice of gathering in-game MMO currency and then re-selling it for real cash will be affected by the new regulations.

incgamers disputes the report, citing the University of Manchester's Prof. Richard Heeks:

This [new Chinese law] therefore is not about what gold farming clients do: use real money to buy these virtual currencies; it’s the mirror image.  And it’s not about the major trade in gold farming such as World of Warcraft, which relates to other types of virtual currency.  And it’s not about buying/selling in-game items.  And it’s not about the power-levelling of avatars. Bottom line: it’s not about gold farming.

In any case, Dean Takahashi of Venture Beat writes, a ban on gold farming may be difficult for Chinese authorities to enforce:

The practice of trading virtual goods for real money is easy to make illegal, but hard to enforce. The gold farmers may not be affected... because of a technicality. Most of China’s gold farmers, who operate in sweatshops with dozens of fellow farmers, operate on servers on foreign soil. The government can only control what goes on with domestic servers...

The New York Times, which did not challenge the notion that the rules would impact gold farming, quoted Indiana University Prof. Edward Castronova, an authority on MMOs. In lauding the Chinese government action, Castonova offered what, to some, may seem like an alarmist view of in-game currency:

This action shows that at least one government is concerned about the way virtual worlds challenge its control of society. As virtual currencies take over more and more purchasing power, control over the effective money supply shifts from the central bank to the game developers.


Comments

Re: Is Gold Farming Really Banned? Confusion Over China's ...

I think they all are missign the point you sell X ammount of Y(whitch can be anything) for Z(real money) so what you do is tax the real money made off of Y.

 


I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..


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Re: Is Gold Farming Really Banned? Confusion Over China's ...

I haven't played MMOs in a long, long time but I was under the impression that "Gold Farming" was the act of doing repetetive tasks to earn gold, not just buying it off some vendor. You know, like XP farming.

Is this not the case?

Re: Is Gold Farming Really Banned? Confusion Over China's ...

Actually, the term has pretty much come to represent the mercantile practice of hiring people to play the game, harvest the gold and sell it to other users.

Re: Is Gold Farming Really Banned? Confusion Over China's ...

You pay for the game, you pay for the tech to run the game, you pay the fee to play the game, and now you pay people to play the game.  At least the Wii will play your game for you for free.

 

Freedom of speech means the freedom to say ANYTHING, so long as it is the truth. This does not exclude anything that might hurt someone's feelings.

--- With the first link, the chain is forged.

Re: Is Gold Farming Really Banned? Confusion Over China's ...

Did you have a point? Ignoring how retarded that comment was (my wii was free? I'm pretty sure my 300$ went to pay for the lense that reads the disk, and the remaining hardware. That's not free), what was your point even if it the statement wasn't so wrong? 

Re: Is Gold Farming Really Banned? Confusion Over China's ...

Sign me up for a Savings AND Checking Account at Bank of (Virtual) America!

Re: Is Gold Farming Really Banned? Confusion Over China's ...

As virtual currencies take over more and more purchasing power, control over the effective money supply shifts from the central bank to the game developers.

Except that virtual currencies aren't money. I can't buy anything with WoW gold outside of WoW, and if I could it would at best be simple bartering. By that logic GM has control over the effective money supply too, because I can trade in cars for real money.

Re: Is Gold Farming Really Banned? Confusion Over China's ...

They do have purchasing power because they have been given a liquid status.  You can sell your gold for money, and can do it easier than selling a car, so it's actually more liquid than an automobile.

 

 

Freedom of speech means the freedom to say ANYTHING, so long as it is the truth. This does not exclude anything that might hurt someone's feelings.

--- With the first link, the chain is forged.
 
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Matthew Wilsonthe lose of nn would not be good for us, but it will not be good for verizion/comcast/att in the long run ether.04/24/2014 - 2:16pm
Matthew Wilsonsadly yes. it would take another sopa day to achieve it.04/24/2014 - 2:13pm
NeenekoI am also confused. Are you saying NN would only become law if Google/Netflix pushed the issue (against their own interests)?04/24/2014 - 2:10pm
E. Zachary KnightMatthew, you are saying a lot of things but I am still unclear on your point. Are you saying that the loss of Net Neutrality will be good in the long run?04/24/2014 - 2:06pm
Matthew WilsonOfcourse it does I never said it did not.though over time the death of NN will make backbone providers like Google, level3 and others stronger becouse most isps including the big ones can not provid internet without them. they can peer with smaller isps04/24/2014 - 1:54pm
E. Zachary KnightMatthew, and that still plays in Google's favor over their smaller rivals who don't have the muscle to stand up to ISPs.04/24/2014 - 1:45pm
Matthew Wilsongoogle wont pay becouse they control a large part of the backbone that all isps depend on. if verizon blocks their data, google does the same. the effect is Verizon loses access to 40% of the internet, and can not serve some areas at all.04/24/2014 - 1:14pm
Neenekolack of NN is in google and netflix interest. It is another tool for squeezing out smaller companies since they can afford to 'play'04/24/2014 - 12:57pm
Matthew WilsonI have said it before net nutrality will not be made in to law until Google or Netflix is blocked, or they do what they did for sopa and pull their sites down in protest.04/23/2014 - 8:02pm
Andrew EisenGee, I guess putting a former cable industry lobbyist as the Chairman of the FCC wasn't that great of an idea. http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rules.html?_r=204/23/2014 - 7:26pm
Andrew EisenIanC - I assume what he's getting at is the fact that once PS3/360 development ceases, there will be no more "For Everything But Wii U" games.04/23/2014 - 5:49pm
Andrew EisenMatthew - Yes, obviously developers will eventually move on from the PS3 and 360 but the phrase will continue to mean exactly what it means.04/23/2014 - 5:45pm
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
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InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
RedMageI'm still disappointed the 360 never broke into Japan either. It had a bevy of great RPGs in the late 2000s.04/23/2014 - 9:48am
 

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