25 February 2018
Visit www.avoka.com

China bans use of virtual cash for trade in the wider economy

30 June 2009  |  12494 views  |  0 2ndlife

China has banned the use of virtual currency in the trade of real goods and services in a bid to limit its possible impact on the financial system.

In a joint circular from the Ministry of Culture and the Ministry of Commerce, the government stated: "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."

The Chinese government and financial regulators have become increasingly concerned about the transfer of virtual currency - typically earned in online gaming - into the physical economy. According to some estimates, trade in virtual money topped several billion yuan last year after rising around 20% annually.

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 and that it would step up its opposition to the booming underground trade in QC coins.

Under the new rules, using virtual money for gambling will be punished by public security authorities, and minors may not buy virtual money.

The Ministry of Culture also vowed to step up supervision on the use of virtual credits in money laundering.
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Facebook begins testing virtual payments system

Facebook begins testing virtual payments system

01 June 2009  |  13173 views  |  1 comments
Entropia Universe gets real world banking licence

Entropia Universe gets real world banking licence

18 March 2009  |  13978 views  |  0 comments
Social network hi5 teams with Paymo to accept mobile payments

Social network hi5 teams with Paymo to accept mobile payments

10 March 2009  |  7067 views  |  0 comments
Virtual world assets are 'soft target' for cybercriminals - ENSIA

Virtual world assets are 'soft target' for cybercriminals - ENSIA

20 November 2008  |  9205 views  |  0 comments
Second Life introduces euro currency exchange for virtual residents

Second Life introduces euro currency exchange for virtual residents

17 November 2008  |  9194 views  |  0 comments
E-Gold brings in KPMG to beef up AML programme

E-Gold brings in KPMG to beef up AML programme

03 October 2008  |  5534 views  |  0 comments
Cybercriminals targeting virtual worlds - McAfee

Cybercriminals targeting virtual worlds - McAfee

29 August 2008  |  9591 views  |  0 comments
Second Life cracks down on unregulated banks

Second Life cracks down on unregulated banks

10 January 2008  |  10934 views  |  0 comments
Virtual credit card launched in Second Life

Virtual credit card launched in Second Life

05 September 2007  |  13000 views  |  0 comments
Sparter sets up virtual currency exchange

Sparter sets up virtual currency exchange

18 June 2007  |  4176 views  |  0 comments
E-Gold operators accused of money laundering

E-Gold operators accused of money laundering

30 April 2007  |  13277 views  |  0 comments
Pre-paid card launched for gamers' virtual funds

Pre-paid card launched for gamers' virtual funds

25 August 2006  |  9202 views  |  0 comments
Cash card allows gamers to withdraw virtual funds at ATMs

Cash card allows gamers to withdraw virtual funds at ATMs

03 May 2006  |  16073 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comVisit http://info.nice.comRegister for the webinar

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12667 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10833 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9331 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8692 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8636 views comments | 11 tweets | 14 linkedin

Featured job

Find your next job