Virtual Currencies Targeted By Chinese Ministry

A new report released by consulting firm Pearl Research confirms the bullish trend of online gaming in China. It predicts a surge in the online games market, predicting it will exceed $6 bil by 2012. The growth of social networking sites was also appraised in the report.

(This latest report comes after Niko released its Chinese forecast just a few days ago.)

What’s new, however, is that the new report confirms what many of us in WoW already knew from last year. That the Chinese will be tightening its scrutiny against virtual currencies with new laws designed to discourage exchange of virtual golds for real cash.

Virtual tokens and credits for online gambling are expected to be covered by the recent crackdowns. The Chinese government has previously voiced its concern over virtual goods becoming an “avenue for gambling and illicit trade — from money laundering to online theft or fraud”.