Originally posted by vandalazzo

lol

they banned gold farming now, to have it legalized later and under their government control.

always went like this

Same will happen in US as well since both china and US are communist now

I find it amusing that people are predicting a mass exodus from games like World of Warcraft and Eve. It's amusing because it isn't going to happen. What will happen is the RMT industry will continue with a vengeance, prices will increase as companies move thier opperations to more forgiving countries and those who buy currency and other services will continue to buy currency and other services.

This $200 million dollar a year industry will continue to be a $200 million dollar a year industry. Growth may well slow, prices will most certainly increase (with inital rises possibly moving as high as 250-500% above thier current figures) but RMT will continue.

So yeah, RMT is down but it certainly isn't out.

I shall blog about this later <3

From what I'm reading, this law is going to do nothing to stop gold farming.  If anything, it is only going to increase the gold farmers' impact.

What this law is designed to do is to prevent gold farmers from acquiring real goods and services for virtual gold.  It does not, however, prevent gold farmers from acquiring real currency for virtual gold.  If anything, the law only strengthened the relationship between real currency and virtual gold, because it admits that virtual gold "is converted into real money at a certain exchange rate."

I presume the law was created because people were using virtual currency to engage in transactions that would be illegal if done with regular currency: things like gambling and prostitution.  They might also be using virtual currency to purchase goods and services without having to pay tax.  The Chinese government don't want that, obviously.

But this law says nothing about selling gold for real dollars...or yuan...or euros.  In fact, that's probably the only thing you can get for virtual gold under this law.  So instead of decreasing the impact of gold farmers in the game, this law is going to increase it.  Since the farmers can no longer buy food, a nice date, or a casino binge with virtual gold; all the people using farming to get those things are now going to be farming for dollars and euros.

And don't think for a moment that China doesn't like a ton of dollars and euros coming into their economy.

Originally posted by rikilii

Reading comprehension FTW.

Based on the description in the article, this does NOT appear to ban gold-farming and selling.  In fact, I don't think it has anything to do with it at all.

which was my point earlier.  It seems to cover party A from selling virtual coins to party B which party B would then trade to party C for real goods or currency.

Originally posted by Beatnik59

From what I'm reading, this law is going to do nothing to stop gold farming.  If anything, it is only going to increase the gold farmers' impact.

What this law is designed to do is to prevent gold farmers from acquiring real goods and services for virtual gold.  It does not, however, prevent gold farmers from acquiring real currency for virtual gold.  If anything, the law only strengthened the relationship between real currency and virtual gold, because it admits that virtual gold "is converted into real money at a certain exchange rate."

I presume the law was created because people were using virtual currency to engage in transactions that would be illegal if done with regular currency: things like gambling and prostitution.  They might also be using virtual currency to purchase goods and services without having to pay tax.  The Chinese government don't want that, obviously.

But this law says nothing about selling gold for real dollars...or yuan...or euros.  In fact, that's probably the only thing you can get for virtual gold under this law.  So instead of decreasing the impact of gold farmers in the game, this law is going to increase it.  Since the farmers can no longer buy food, a nice date, or a casino binge with virtual gold; all the people using farming to get those things are now going to be farming for dollars and euros.

And don't think for a moment that China doesn't like a ton of dollars and euros coming into their economy.

Ok, I see gold farming being a mouth watering temptation in WoW....But in Warhammer you must be without a doubt a lazy mold covering your brain caural player to buy gold......It so bloomin easy to get that I have a 20 gold surplus on my Tier 1 character....So if you want to toss money into a black hole, goto church and tith.
 

Originally posted by CaesarsGhost

hey, anybody who believes this will make any sort of difference:

I have a few bridges to sell you...

Exactly.

I see the rest of the worlds gold farmers pulling in the slack when this hits.

Originally posted by Lanthir

Originally posted by rikilii

Reading comprehension FTW.

Based on the description in the article, this does NOT appear to ban gold-farming and selling.  In fact, I don't think it has anything to do with it at all.

 

which was my point earlier.  It seems to cover party A from selling virtual coins to party B which party B would then trade to party C for real goods or currency.

It does indeed ban gold-farming. Only the company will be able to sell virtual currency(edited this part as it looks like you can still sell items)... "legally". I seriously doubt this will even make a dent in gold sales, though.

"The statement said Tencent had strongly opposed the underground trading of virtual money, which could enable online theft and fraud. The company would work with the authorities to combat online crimes, according to the statement.

Cui Ran, an expert on the Chinese online industry, said the regulation aimed to "nip illegal online activities in the bud," as current trading volume was still too small to shake the nation's entire financial system.

But as the trade expanded steadily, with increasing conversions between virtual and real money, there would be an impact on the financial system, he noted. "

It does indeed ban gold-farming. Only the company will be able to sell virtual currency(edited this part as it looks like you can still sell items)... "legally". I seriously doubt this will even make a dent in gold sales, though.

 

How?  What about farming and selling gold involves the exchange of real world goods for virtual currency?

LOL,

If this is affective (which it won't), instead of deciphering broken Chinese English, I gotta figure out broken Mexican English.  Being from Texas, I'll get by.

It really doesn't look like many who replied in this thread actually read the full main article this is based upon.

The number of internet users in China is about 60 mill or so less than the ENTIRE US population not just gamers.  The company quoted in the article as most popular virtual currency has 220 million subscribers -- a wee bit more than WoW's entire world subscriber list.

The reasons are to prevent mostly illicite activities -- name a business you could launder funds through easier than one that has no real product being that it is virtual.

China also is including game cards in as 'virtual currency' and making them illegal in that country.

So this will impact their economy quite a bit.  They also are doing so now instead of later because of the 20% growth in the market last year.  Simply put, they need to stop it now or it'll really trash their economy if they wait and this industry, that is trading real currency for virtual currency and then trading in that virtual currency, has a huge amount of problems -- both potential and current -- for uses and abuses far beyond some gamers buying toys in games.

Originally posted by rikilii

It does indeed ban gold-farming. Only the company will be able to sell virtual currency(edited this part as it looks like you can still sell items)... "legally". I seriously doubt this will even make a dent in gold sales, though.

 

How?  What about farming and selling gold involves the exchange of real world goods for virtual currency?

The exchange of irl currency in exchange for virtual goods IS now illegal in China, unless it is facilitated by the company who owns the IP rights to that currency. Furthermore, this is obviously a first step towards the strenuos regulation of the virtual game worlds we in the West take for granted. We'll just have to wait for some people to get shot before we know the full extent of this law :-)

However, this is not a massive dent in the RMT industry. It is a massive dent to the Chinese economy (although when you have an economy like that, you don't really need to worry about a few dents here and there). The RMT industry will simply move their operations to other countries that will benefit more from the industry, the Philipines being a good example.

I wonder which nation will take over if this effectivly stops the Chinese, there will be a gap in the market.

Originally posted by chriswsm

I wonder which nation will take over if this effectivly stops the Chinese, there will be a gap in the market.

It's more than likely that they will move to countries like the Philipines. The reason why China was so popular (but by no means that only country in use) with RMT companies was simply because of the cheap labour and low rental prices on buildings. In Phil, labour is not nearly as cheap but building rental is on the same level, so it makes sense for them to move there.

There are other countries of course that may well see more of an influx of RMT companies. The Internet uptake in African countries is gaining speed, so we may see some companies moving their, although the lack of political stability in the region will put them off. Middle East is an option as well.

Unfortunately I don't see this making a very big impact on the plague until the game companys come up with a way to stop the practice in game. it may slow it down for a little while, but does nothing to stop it completely. I would love to see a game where you don't get spammed in /tell or mail every 5 seconds to by gold or for power leveling services. This is why WoW is the most hacked MMO in existance, because of the keyloggers and other progams hidden in these so called "services".

You won't see many in Africa due to the poor  infrastructure,the next couple of years you will see world wide crack downs in all areas of the internet including massive new UN anti piracy laws,it's sad even the wild west eventually was tamed,so it will be with the internet.

And alot of people say that this will have little impact have no idea what they are talking about,this effects any Chinese entrepreneur if you think the Chinese government is not going to mind if one of their citizens attempts to circumvent law by setting up shop in a sympathetic country then my friends you don't know the Chinese government.

 Hup hup, huzzah

Originally posted by tuzalov

You won't see many in Africa due to the poor  infrastructure,the next couple of years you will see world wide crack downs in all areas of the internet including massive new UN anti piracy laws,it's sad even the wild west eventually was tamed,so it will be with the internet.

And alot of people say that this will have little impact have no idea what they are talking about,this effects any Chinese entrepreneur if you think the Chinese government is not going to mind if one of their citizens attempts to circumvent law by setting up shop in a sympathetic country then my friends you don't know the Chinese government.

I would retort with the idea that you don't know what you are talking about.

The majority of the companies that operate from China and pile the most amount of money and infrastructure into the Chinese and the "workhouses" of farmers are not Chinese companies :-) Pretty much all of the are US or EU companies ;-) Go do some reading ;-) The Chinese may work for these companies... but that is where it ends. Those are the driving forces behind this industry ;-) I know this because as a Journalist I had to do a large amount of research into the topic ;-)

Originally posted by Infalible

Originally posted by rikilii

It does indeed ban gold-farming. Only the company will be able to sell virtual currency(edited this part as it looks like you can still sell items)... "legally". I seriously doubt this will even make a dent in gold sales, though.

 

How?  What about farming and selling gold involves the exchange of real world goods for virtual currency?

The exchange of irl currency in exchange for virtual goods IS now illegal in China, unless it is facilitated by the company who owns the IP rights to that currency. Furthermore, this is obviously a first step towards the strenuos regulation of the virtual game worlds we in the West take for granted. We'll just have to wait for some people to get shot before we know the full extent of this law :-)

...

Do you have a copy of the actual law, because that's not what the article says at all.

It says:

'China has unveiled the first official rule on the use of virtual currency in the trade of real goods and services to limit its possible impact on the real financial system.

...

"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."'
 

Nothing there says that it is illegal to sell virtual currency for real money.  In fact, the article assumes this will take place.

Originally posted by rikilii

Originally posted by Infalible

Originally posted by rikilii

It does indeed ban gold-farming. Only the company will be able to sell virtual currency(edited this part as it looks like you can still sell items)... "legally". I seriously doubt this will even make a dent in gold sales, though.

 

How?  What about farming and selling gold involves the exchange of real world goods for virtual currency?

The exchange of irl currency in exchange for virtual goods IS now illegal in China, unless it is facilitated by the company who owns the IP rights to that currency. Furthermore, this is obviously a first step towards the strenuos regulation of the virtual game worlds we in the West take for granted. We'll just have to wait for some people to get shot before we know the full extent of this law :-)

...

 

Do you have a copy of the actual law, because that's not what the article says at all.

It says:

'China has unveiled the first official rule on the use of virtual currency in the trade of real goods and services to limit its possible impact on the real financial system.

...

"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."'
 

 

Nothing there says that it is illegal to sell virtual currency for real money.  In fact, the article assumes this will take place.

 

"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."

In other words, virtual currency will be limited to virtual transactions. There really is little that needs explaining here. The point that is made about the virtual currency being exchanged for real money is only made to highlight how it is used. It does not say, "Virtual currency will continue to be exchanged for real currency," because - by definition - that is a form of, "real goods and services."