China Outlaws Gold Farming

Posted by Amatera on Monday, June 29th, 2009 - 29 Comments

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According to a government-issued press release, China’s Ministry of Culture and Ministry of Commerce (that’s right, they’ve got two Ministries on the job!) have filed an injunction against anybody who would sell or trade virtual currency for real goods or services. This comes as the country’s first official ruling on the matter, which defines what does and does not constitute virtual currency (game cards count, apparently), and cites concerns of gambling and illicit trade using the the funny money as a go-between.

Now, your average gold seller probably spends at least half his day in a tiny room filled with cigarette smoke and the ambient buzz of a dozen or so computers running non-stop, farming up mobs and resources just so he can earn his meager paycheck. He’s the computer-age equivalent of your average “working joe.” It almost makes me feel sorry for

I wonder if Cash4Gold would accept all of my virtual WoW money?

those guys, but hopefully the enaction of this new law will curtail the more malicious brand of online crooks: those that hack and ravage player accounts. Even if you haven’t experienced it yourself, we almost all know someone who’s fallen victim to the practice, and we understand how much of a pain in the butt it can be to get things squared away again.

So, does this mean bye-bye Susan Express? As one of the more noted gold-selling sites, perhaps, as the Chinese government no doubt has their eyes on certain firms. But, as with just about any illegal trade, it will be all but impossible to completely stamp out. Gold farmers will go further underground or move their operations to other countries that have yet to ban the practice, though I believe that the law works both ways, meaning that Chinese players could be indicted for buying, as well as selling.

The press release cites “QQ Coins” (yes, they’re really called that) from Tencent.com as the most often-traded virtual currency in the country. Originally, they were used to purchase clothes and accessories for online avatars, but have come to be used by a variety of online stores seeking to capitalize on the incredible popularity of the associated online/networking services provided by Tencent. The new law makes exceptions for legitimate content providers, and the company has stated their intent to cooperate with the government in stopping online theft (just look at their “vision:” To be the most respected internet company).

According to tech-related business site Information Week, the gold-selling business currently bring in “between $200 million and $1 billion annually.” In addition to simply curtailing crime, the regulation seems apt to prevent the virtual trade from becoming too much of a burden on China’s real-world economy in the future.

I, for one, am glad to see China taking a stance on the issue, especially since the country is purported to house at least 80% of gold-selling operations worldwide. I can guess what most of you think of this development, at least from a WoW player’s standpoint.

But what about the global economy? These illicit operations may be a thorn in the side of real-world governments and creators of virtual goods (like Blizzard), but is stunting the growthy of a new economic avenue worth it in the long run? Just as digital distribution of products like movies or games is becoming a steady alternative to buying physical copies from the store, is it possible for money to effectively be traded in a similar fashion?

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Related Posts: (Censored) World of Warcraft Returns To China, TCG Mounts No Longer BOP, The High Cost of a Low Price, Chinese Company Challenges Gender-Bending In MMOs, Blizzard Switches World of Warcraft Partner in China,

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Comments

    By higy on Monday, June 29th, 2009 at 5:08 pm

    first

    By Iiene of Kul Tiras on Monday, June 29th, 2009 at 5:15 pm

    Perhaps they’ll all move to Nigeria. Then, in addition to emails from such stalwart defenders of the free market as ‘Susan Express”, you’ll get emails informing you that “30 million WoW gold is in my account that’s getting banned, and I need your help to get it out…”

    By higy on Monday, June 29th, 2009 at 5:17 pm

    on a real note what i think is that blizz needs to sell their own gold cause people no matter what will buy it so if u sell it no1 will be hacked or anything.

    By Rannar on Monday, June 29th, 2009 at 6:23 pm

    @ higy

    The day they start selling gold, is the day I’ll stop playing (and most of the people I know who play as well). Not only would it be extremely unfair to players who study/work for a living (which is about most of them), but it wouldn’t stop gold farmers at all. Imagine if blizz starts selling gold at X dollars for X gold. All they’d have to do is sell the same amount of gold for, lets say, 20 dollars less. Maybe some people have the money extra money to spare, but there would always be someone to whom those 20 bucks would make a huge difference. Anyway, even the ability to legally buy gold would fundamentally alter the game and the way its played (isn’t that against their own rules?) and would just, plainly, be retarded

    Moving on, props to China for the much appreciated move, hopefully now I won’t have to delete 30 mails every time I log in to my main, telling me about the wonders of buying cheap gold and how easy it is to purchase powerleveling services…

    By Rannar on Monday, June 29th, 2009 at 6:25 pm

    Oh and a big lol to liene’s comment xD

    By Meren on Monday, June 29th, 2009 at 7:31 pm

    Im glad that somone is finnaly going to take a stand against the selling of gold. Those of us that dont have unlimited time to farm usually spend alot of our WoW time doing dailies so that we can get that measly amount of money that we need. Im sick of people telling me that they just got a cool new mount because the bought gold online.

    And if what this blog says is true and 80% of the online Gold Sellers are in China than even if they decide to move im sure that only about half of them will, so it might eliminate about half of blizzards problem. I also believe it would be a serious problem if Blizzard started selling gold because no one would work for their money anymore and the value of WoW’s currency would plummet.

    By Veppy on Monday, June 29th, 2009 at 8:20 pm

    This shows how stupid and shortsighted the Chinese government is.

    Yes, you might say the goldfarming workshops are sweaty places with humming computers and cigarette smoke, but that’s far better than most of the options, like REAL sweatshops and hazardous work conditions. Why else would gold farming be so popular? It gives the workers much better conditions, much less hazards and much better income.

    And while there are limits in ‘real-life jobs’, like the amount of resources and the amount of need, the items and currency in virtual world are.. well, virtually limitless. It’s a place of expansion.

    This attack towards gold-farming by the Chinese government is only an attack against themselves.

    By Alayea on Monday, June 29th, 2009 at 11:11 pm

    @Rannar

    Just like you, I’d stop playing if Blizzard pulled that sort of crap. I’ll pay to play a game, but I draw the line at spending REAL money for VIRTUAL money.

    By Nebyula on Monday, June 29th, 2009 at 11:26 pm

    But what else are we going to create silly song parodies about?!?!?!?!

    By atlas on Monday, June 29th, 2009 at 11:42 pm

    ive paid for wow gold before i feel much happier paying $80 than farming for weeks to buy epic flying/mount/cold weather flying/dual spec.

    By Zvonimir on Tuesday, June 30th, 2009 at 12:21 am

    Thank you Iiene, that made my day.

    By Brian on Tuesday, June 30th, 2009 at 2:17 am

    yea i bought 3k gold to get my epic. i pay $15 a month to play a game and have fun. doing the same stupid ass quests day in and day out to get something thats really important in the game isn’t fun. it’s their way of making you play more to get more money. stop making shit cost 5k+ gold and the people who can’t or don’t want to play that much will be less inclined to buy gold. of course no matter what, there’s going to be people who buy gold just because they can and want everything. hell after 3.2 my BiS boots became a fucking LW recipe. and i would love the gold to buy them but cant and im not buying gold anymore.

    By Buyinggoldisntasin on Tuesday, June 30th, 2009 at 2:48 am

    I’m spending MY real life EARNED money on a game. I’m the stupid one. Get your hands outta my pockets and stop telling me what to do with it. I’m not hacking your account. I’m not stealing your money. I’m not trying or doing any harm to you or your gaming experiance. You prob wouldn’t even ever notice. Yea, grinding out quests day in and day out spending more of YOUR TIME in a VIRTUAL WORLD…..sometimes I wonder if I really am the stupid one…imagine you can get all the gold instantly…save hours on your life to go do something more productive.

    That’s the way I look at it.

    By Rulaberry on Tuesday, June 30th, 2009 at 4:03 am

    Thousands of Chinese people will lose there jobs… Methinks there will be many unemployed ppl having no jobs to feed there familys but BUYING GOLD IS SUPPORTING hacking accounts scamming and more. Good on you buying gold “buyinggoldisntasin” thanks to you and everyone else who buys gold many people as loosing there hard worked toons. If your so fail that you can’t make any gold your pathetic. Have you ever heard of dailys. If you can’t make gold from the ah then do them :P. I hope you get hacked and get a taste of your own medicine. I’m glad china is banning gold farming. Alot less hacked accounts. Stop being such a noob.

    By Rulaberry on Tuesday, June 30th, 2009 at 4:05 am

    And btw you are hacking our accounts an stealing our money. What about all that hard earened gold and toons we have had to level. Your supporting it witch is just as bad

    By Meadow on Tuesday, June 30th, 2009 at 5:27 am

    @ Rulaberry

    Are you retarded ? “Have you ever heard of dailys.”

    Half that guys post was about how he doesn’t want to spend half his time playing the game doing the same annoying dailys over and over.

    I hate to say it but I agree with Buyinggoldisntasin, I don’t play WOW to farm gold, I don’t mind saving and being smart with my money but 5K G seriously ? You can’t be smart with your money and hit 5K G in a timely manner, you have to farm for that and that’s pointless. I really don’t think it benefits Blizz at all so why such high prices?

    Meadow

    By peddel on Tuesday, June 30th, 2009 at 5:48 am

    “players who buy gold are supporting spamming, botting and keylogging — activities that diminish the gameplay experience for everyone else”

    what it means is:
    everytime you buy gold, a account is hacked for it. or there are 3 extra bots spamming your trade channel.

    so kuddos to china

    By Vag on Tuesday, June 30th, 2009 at 8:47 am

    YES!!!!

    Oh, and higy, die in a fire.

    By Dan on Tuesday, June 30th, 2009 at 9:04 am

    Wait I thought China was trying to improve it’s economy! This is just going to stop a lot of money coming in daily if they stop this.

    And what about the people who are about to lose their jobs? Not that China cares………

    By Squiggles on Tuesday, June 30th, 2009 at 10:13 am

    I have never bought gold, and I never would. If Blizzard started selling gold, I would never play again.

    Why play if you always have all the gold you need, what’s the point?

    By Squiggles on Tuesday, June 30th, 2009 at 10:24 am

    “everytime you buy gold, a account is hacked for it.”

    And God kills a kitten.

    By first on Tuesday, June 30th, 2009 at 10:32 am

    first!

    By Alayea on Tuesday, June 30th, 2009 at 11:35 am

    @Meadow, Brian

    Then have you thought that perhaps WoW isn’t for you?

    By Tet on Tuesday, June 30th, 2009 at 11:39 am

    @ first….i think you should join higy in that fire,

    I would much rather have the money earned from goldsellers to fund a company that execute people that feel the need to tipe first.

    And as for the gold sellers…i say screw them!!! screw them all!

    By Drhorrible on Tuesday, June 30th, 2009 at 7:59 pm

    I am in favor of WoW selling in game currency.

    The reason the price things in game so high is because they want the players to play loads in order to make them feel like they get their moneys worth every month.

    The problem with grinding is that it takes an awful lot of time and it means you have to do a lot of repetitive shit, unless you are brain dead, this gets boring very quickly.

    I play WoW because I like raiding, I like the PvP, I like the story and I like playing a game with my friends. I don’t play it because it involves repetitive chores.

    The argument that people who have less money in RL wouldn’t receive the same advantage is pointless in my opinion because just like anything else in life, you would pay for it because it makes your life easier. Buying say 3k gold towards your epic flying for instance would save you days of in game time leaving you more opportunity for you to raid etc, and actually let you gear up.

    If blizz offered competitive prices with the security that your account wont get banned/suspended/ have whatever you bought not removed if they found out would easily be enough to counter gold farmers.

    By Zarinn on Wednesday, July 1st, 2009 at 9:39 am

    I don’t think you read the press release closely enough. They aren’t going after gold farmers, but are going after places that use in game, or virtual, money to buy real good and services.

    In other words, they are trying to stop people from bypassing local sales tax laws. they are not the least bit concerned about the economy or gold in WoW, but their own economy. Nothing in that press release even hints at them going after gold farmers.

    By Amatera on Wednesday, July 1st, 2009 at 10:06 am

    @Zarinn

    When you pay cash for gold, that’s trading actual money for virtual goods. No, the Chinese government isn’t going to suddenly send its goons out onto WoW servers hunting down anyone attempting to farm gold, but it will go after the businesses that facilitate such things.

    You’re right in that this is not a measure specifically aimed at WoW or making the experience better for any of us players, but they *are* concerned about it insomuch as it has the possibility of encroaching on their real-world economy.

    As the press release states, Tencent’s virtual currency is the most popular, but WoW gold is pretty high up on the list.

    By Zarinn on Wednesday, July 1st, 2009 at 10:40 am

    I’m not convinced. The reason they are going after Tencent’s currency is that it is being used in place of their own actual currency. That is not the case for WoW gold. In fact, the gold farming opertations have a positive impact on their economy with no negative effects like bypassing sales tax and such, so it is pretty much exactly the opposite to Tencent.

    While that press release is the only mention of this I have seen, there is nothing in there that even hints that they are going after gold farmers in any way. Any thoughts along those lines are just wishful thinking from those reading it.

    By Richard on Wednesday, July 1st, 2009 at 1:54 pm

    I agree with Zarinn.

    The article’s quote from the Commerce Ministry’s circular states that virtual currency is exchanged for real currency and makes no mention of outlawing this activity. All it says is that said virtual currency can not be used to purchase real goods and services, and anything in WoW would likely be considered a virtual good/service.

    To me, the argument that paying cash for gold is trading actual money for virtual goods is neither here nor there; China is not outlawing that, they are outlawing the reverse.

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