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China Bolsters Virtual Currency Regulations
China's Ministry of Culture (MoC) and Ministry of Commerce (MOFCOM) issued regulations on June 26 to strengthen the supervision of virtual currency in online games, after receiving approval from The People's Bank of China, reports 163.com. Virtual currency is defined as prepaid cards, prepaid currency and points, but not virtual items, the report said.
Under the regulations, virtual currency issued by one company cannot be used to purchase products or services from another company; and operators may not require real or virtual payment to enter lucky draws or other random selections for virtual currency or items. Companies already involved in the trade or issue of virtual currency must register with provincial culture departments within three months of the regulation's release, the report said.
In addition, operators can only accept legally approved currencies for the sale of virtual currency; must keep records for at least 180 days of funds added to and transferred to or from user accounts; should offer related records if disputes occur, and may not offer virtual currency trading services to juveniles, according to the report.
Operators who suspend products or services must inform gamers 60 days in advance and refund un-used virtual currency with legal tender or another method approved by the user, the report said.
The regulation is primarily aimed at virtual currency issued by large online game companies including Tencent (700.HK) and Shanda (Nasdaq:SNDA), in order avoid virtual currency influencing the national financial system, reports Sohu quoting an MoC marketing department chief.
Tencent said it plans to work with the government to carry out the new regulation, according to a later report from Sohu.
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