Chinese Government Issues Virtual Currency Regulations

Shanghai Youth Daily, 11/09/10

Fourteen Chinese government bodies, including the Ministry of Culture, Ministry of Public Security, and the People's Bank of China, have issued the Notice Regarding the Further Strengthening of Internet Café and Online Gaming Oversight. The notice specifies regulatory requirements for virtual currency transactions such as those involving Tencent's (0700.HK) Q coins.

The regulations state that online gaming firms cannot allow the purchase of real-world goods using virtual currency, only the purchase of the firm's own virtual goods and services. If users need to convert their virtual currency into legal tender, it cannot exceed the value of the original sum of virtual currency purchased, and resale of virtual currency is strictly prohibited.

Keywords: online gaming Internet Tencent virtual currency Ministry of Culture Ministry of Public Security People's Bank of China 0700.HK regulation

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