Jump to content
House Price Crash Forum
Sign in to follow this  
cashinmattress

China Bars Use Of Virtual Money For Real Goods Trading

Recommended Posts

China bars use of virtual money for real goods trading

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

The government also spells out the definition of the virtual currency for the first time, which includes prepaid cards of the virtual game, but excludes any outfit such as costume and weapon in the game, according to a joint circular issued by the Ministry of Culture and the Ministry of Commerce Friday.

"The virtual currency, which is in exchange with 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." it said.

China has the world's largest population of Internet users, with 298 million people online by the end of last year.

Media reports showed the virtual money trade topped several billion yuan last year after rising around 20 percent annually.

Under the new rules, using virtual money for gambling will be punished by public security authority, and the underage are not allowed to buy virtual money.

The Ministry of Culture also vowed to step up supervision on launder of money via virtual credits and other illegal online activities.

The most popular Chinese online credits are "QQ coins" issued by Tencent.com, which has at least 220 million registered users. In a media statement Saturday, the company said it "resolutely" supported the new rule.

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.

This is a very interesting story. At what point do the Chinese, or anybody else for that matter, cease recognizing a currency?

Edited by cashinmattress

Share this post


Link to post
Share on other sites
China bars use of virtual money for real goods trading

This is a very interesting story. At what point do the Chinese, or anybody else for that matter, cease recognizing a currency?

Well Tencent could hardly say anything else being utterly dependent upon the largesse of the Chinese govt. Would have been much more interesting if they'd have stuck two fingers upand said F**K YOU !" If only pigs could fly ...

Will they start closing down the all-night Beijing internet parlours now?

:ph34r:

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.