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Gold Farming made illegal by Chinese Govt

  • Thread starter Bluebottle
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EnigmaMaitreya

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I guess it seems that the Chinese government has finally decided to put a ban on the game gold farming sweat-shop practice. Alas it a tad late for it to make any difference on UO. Its likely to not have much of an impact elswhere and just add more business for India and Thailand.

http://www.massively.com/2009/06/29/new-legislation-in-china-outlaws-gold-farming/
I suspect that in the end, the Government(s) want a bigger slice of the pie than they are getting, if any.

Consider this Conversion of In game Currency to Real Life Currency is in fact an Income.

Yet the transactions are so small, individually, that they are not tracked by anyone, even though they could be.

If the Forbes Projections of a few years back are on target, then the Gross Income from the sale of In Game items/Currency are in excess of $5 Billion annually.

One might kind of wonder why such an industry that is inherently electronic funds transfer in nature are exempt from taxation.

Such that IF EA/UO sold all items and gold through the UOStore, then of course they would be required to pay taxes, BUT They would be able to subtract all the expenses first, not the least of which would be Employee Slaries, benefits, Hardware, Building etc.
 

Maplestone

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My read of it is that it's not aimed at gold-farming at all, but rather at non-government currencies that are being used for tax evasion (although it's mostly aimed at non-gaming stuff, even the currency in Second Life started getting some attention from the IRS in the US a while back because big companies were starting to look at it as a loophole where you could trade without having to pay sales taxes).

I don't think it has any intention of shutting down gold farming, especially if it a growing source of income into the country.
 
C

CatLord

Guest
Untaxed growing sources of income into any country arent welcomed.

It creates market deviations and illusionary economies... with the current global effort to control every kind of money flux and the constant attacks to off-shores... having a virtual off-shore on every PC could be extremely dangerous.
 
B

Bluebottle

Guest
Untaxed growing sources of income into any country arent welcomed.

It creates market deviations and illusionary economies... with the current global effort to control every kind of money flux and the constant attacks to off-shores... having a virtual off-shore on every PC could be extremely dangerous.[/QUOTE

Good point - I guess it creates what amounts to a very effective money laundering scheme!
 

EnigmaMaitreya

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Stratics Legend
Untaxed growing sources of income into any country arent welcomed.

It creates market deviations and illusionary economies... with the current global effort to control every kind of money flux and the constant attacks to off-shores... having a virtual off-shore on every PC could be extremely dangerous.[/QUOTE

Good point - I guess it creates what amounts to a very effective money laundering scheme!
I would think it more likely to be as, I think, Maplestone suggested, a Black Market / Under The Table economy. This kind of economy exist world wide and unaccounted for funds flowing around are one way to convert the, lets call them chits , markers or any convenient mutually agreed upon combination of letters and numbers :) into real life currency, without invoking the Tax system of the given country(s).

Not to create a segue, but it is like the case of "Who killed the Electric Vehicle", from the perspective of an untaxable ... thing is going on that ....

Despite the popular propaganda (deliberate or just plain old clueless) it is, in the U.S., the Government, that killed it and keeps it dead. It has this thing called a Road Use Tax, it is implemented in every state and is buried UNSEEN (good way to have the Oil Company and Station Operator take the blame) in the per gallon price of Gasoline or Diesel at a Gas Station.

Well, if you plug your car in to a convenient outlet your bypassing the Road Use Tax. They have not quite come to a unified approach on how to resolve this issue, so they throw up the roadblocks and curves at all alternate energy systems that would bypass the Gas Station Model. One thing I had heard recently was the installation of a G.P.S. system in every vehicle that would report the amount of Tax Due for the Vehicle. I can only imagine the ACLU and others .... well had their .... hum thoughts on the subject expressed.

The above is true of Natural Gas Vehicles, Fuel Cells Vehicles etc. *Cough* and home made Diesel.

And yes, all the Hybrid vehicles are CHEATING :) they are NOT paying their *coughs* fair share of the Road Use Tax. :) So we have the Gas Guzzlers paying for the Cheating Hybrids :) to use the Roads.
 

Dermott of LS

UOEC Modder
Stratics Veteran
Stratics Legend
...

Untaxed growing sources of income into any country arent welcomed.

Government forbid you keep anything you earn. That's "unfair" to others who didn't earn it.
 
C

Cazzador

Guest
Yeap and all the wellfare people that need your money.
 

JC the Builder

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Its likely to not have much of an impact elswhere and just add more business for India and Thailand.
Actually it is having a huge impact in games which actually have a working economy. For instance in Eve Online the price of certain minerals (along with many other items) is reaching unseen levels directly because of this. I don't know enough to make a direct comparison, but prices are up something like 25-30%.
 

Omnius

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Stratics Legend
Actual Gold farming in UO is less profitable than most activities. Of course it does bring in more gold into play but mining for instance can bring in more money per hour if done along side bod farming.
 
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