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China's MOC to Strengthen Enforcement of Online Gaming Rules

MOC, 12/05/16

China's Ministry of Culture has issued a notice directing online game operators to improve compliance with existing laws governing the industry, including rules prohibiting the conversion of online game virtual currencies into legal tender.

The MOC explained that in recent years, China's online game industry has developed rapidly, both providing a greater variety of recreational activities and contributing to China’s economic development, but the responsibilities of online game operators have not been made sufficiently clear, and such problems as operators employing perverse methods to induce greater consumption and providing insufficient protection of user rights and interests have become increasingly prominent. Accordingly, the MOC has issued the "Notice on Strengthening Supervision of Game User Activities by Game Operators,” re-emphasizing existing regulations previously promulgated in the “Regulation on Internet Information Services of the People's Republic of China,” the “Interim Provisions on the Administration of Internet Culture,” and the “Interim Measures for the Administration of Online Games.”

The Notice also emphasizes that online game operators must require online game players to use valid IDs for real-name registration, and must not allow a visitor mode login to be used to pay for game subscriptions or in-game purchases.

Online game operators must also limit the amount of money gamers can spend per transaction when purchasing subscriptions or in-game services, and must send a confirmation to users when payment transactions have been completed.

Heavier enforcement of the provisions clarified and re-emphasized in the Notice on Strengthening Supervision of Game User Activities by Game Operators will begin from May 1, 2017.

Editor's Note: The MOC previously promulgated detailed regulations governing online game operators' use of virtual currency in 2009 and 2010. For more details, please see China Regulates Virtual Currency Market, MD 6/26/09 issue, and Chinese Government Issues Virtual Currency Regulations, MD 11/09/10 issue.

Keywords: mobile gaming virtual currency virtual items Internet Ministry of Culture online gaming regulation real name system wireless

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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