China's MoC Releases Gaming Regulations, Effective August
17173.com, 6/22/10
China's Ministry of Culture (MoC) has issued the "Interim Regulations for Online Game Management," to take effect on August 1, 2010.
The regulations, comprised of 39 articles, begin by clearly defining the MoC as China's regulatory authority for online gaming, and delimit the scope of the regulations to apply to game developers, operators, and virtual currency service providers.
The regulations impose business scale and scope criteria for game operators and virtual currency service providers, which must have a minimum registered capital of RMB 10 mln and obtain a Network Cultural Business Operations License, among other requirements. The regulations also outline the application procedure for a License, which is valid for a period of 3 years, after which the holder must apply for renewal.
The regulations outline types of content prohibited from online games, and state that the MoC is responsible for content approval (for both domestic and imported games), but that the MoC will not carry out duplicate content review for games that have already been pre-approved by other relevant authorities. The regulations also state that companies applying to import games must be the exclusive licensed operator in China.
The regulations restrict the use of virtual currency to exchange for game products and services, emphasizing that virtual currency may not be exchanged for other real-world goods or services. Both game operators and virtual currency service providers must retain user transaction data for no less than 180 days, and game operators must report the type, price, and quantity of virtual currency issued to local MoC authorities.
The regulations stipulate that game operators and virtual currency service providers must require users to provide valid identification to register, while virtual currency service providers must also ensure that a valid bank account under the same name is bound to registrants' accounts. Additionally, virtual currency service providers may not provide transaction services to minors.
Game operators must file registration of a game with the MoC after beginning operation, and must re-file registration if significant changes are made to game content, including plot, location, missions, economic systems, fighting modes, etc.
According to the regulations, game operators must implement technical methods to prevent underage gamers from being exposed to inappropriate gaming content, to limit their playing time, and prevent addiction.
In cases of disputes between users and operators, game operators can require users to produce their ID; if the ID matches that under the user's registration file, game operators must assist users in providing evidence relevant to the dispute.
Finally, the regulations stipulate penalties for violations, ranging between RMB 10,000 to RMB 30,000, noting that serious infractions may result in cancellation of the company's Network Cultural Business Operations License, as well as other legal action.
Keywords: real name system online gaming Internet virtual currency Ministry of Culture Network Cultural Business Operations License regulation
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