First, China introduced a tax on real-world profits generated from the sale of virtual goods; now, China’s Ministry of Commerce has released its first regulation of virtual currency. The law explicitly bans the use of virtual money to buy real-world goods or services, and restricts minors from buying any virtual currency, including popular pre-paid gaming cards.
The crackdown comes as China tries to grapple with growing issues of online gambling, underground trading and “virtual money laundering,” according to China View. It’s also aimed at curbing the volume of conversions between virtual and real money; analyst Cui Ran told China View that if left unchecked, fluctuations in China’s billion-dollar virtual goods market could eventually have a negative impact on the country’s real economy system.
By Tameka Kee