Only two years ago China "strictly forbid" players from making money trading virtual currencies. The statement wasn't enforced and gold farming continued to rise in the country.
Now the Financial Times has announced that China has announced a 20% tax on money made from trading virtual currencies.
Some interesting lines from the article:
- "Trade in virtual items – ranging from “gold” coins to magic swords and in-game property rights – is estimated to be worth more than Rmb10bn ($1.45bn, €1.15bn, £900m) a year in China alone, according to consultancy iResearch."
- "Beijing tax officials declined to explain how they would implement the vaguely worded ruling, with local media saying detailed regulations could be announced in the coming days. However, Chinese analysts and games players suggested that the authorities’ attempt to tax the virtual currency trade would fare no better than the previous effort to ban it."
As we have said in the past, prohibition rarely works and gaming companies and governments would be much better suited to enforce regulation and taxation than prohibition of this emerging market.
What do you think the future of virtual game markets will be? Prohibition? Free Markets/Trade? Regulation? Let us know.
I'm all for free markets. However, in reality as the market develops I see more and more regulation starting with taxes. Besides that however, I think developers need to try to encourage self-government and player regulation more of a Raph Koster sandbox sort of environment.
Thank you for posting in the forum, this was a a little more detailed and much more well written than the other news about it. Straight to the point as well.
I agree that prohibition rarely works. Proof positive is the presence of so many new gold selling sites in the industry defying the cries of the EULA lovers. What I'm not happy about is that there are more questionable sites out there ready to take advantage of MMO players eager to find the best deal, yet only to find their accounts stripped or banned in the process. I would like to see these jerks punished!
LOL IF they tax it then its just gonna cause more BS. Since game currency is protected under copyright protection. Unless blizzard gives the ok. then the companies and country is breaking Copyright regulations. Gotta love stupid people
Thanks for info
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