What Is Virtual Currency?

Virtual currency refers to non-real currency. Well-known virtual currencies such as Baidu's Baidu coins, Tencent's Q coins, Q points, Shanda's coupons, micro coins launched by Sina (for micro games, Sina reading, etc.), chivalrous ingots (for chivalrous Tao games ), Wenyin (used for Snow White Games), popular digital currencies in 2013 are: Bitcoin, Litecoin, Infinitecoin, Quarkcoin, Zetacoin, Barbecue Coin, Penny Coin (outside network), Invisible Gold Bar, Red coins, prime coins. There are currently hundreds of digital currencies issued worldwide. The legend of "Bitkin, Wright Silver, Infinite Copper, and Penny Aluminum" is popular in the circle.

Virtual currency

Virtual currency refers to non-real currency. Well-known virtual currencies such as

There are various types of virtual currency. Virtual currencies that are more widely accepted abroad include Facebook's F coin and online game Second Life's Linden coin. The most representative domestic virtual currencies are Tencent Q coin, Sina U coin, Baidu coin , Grand Ingot, etc.

There are currently four types of virtual currencies on the market: 1. Game currency developed by game operators for players to use as a trading medium in online games; 2. Issued by portals or instant messaging tools for the operation of cyberspace Dedicated virtual currency used within the market; 3. Interactive virtual currency that can be used both within the virtual currency issuing entity and purchase goods and services from non-issuing entities; 4. Based on cryptography and modern network P2P technology, through complex mathematics Algorithm-generated, special electronic, digital network cryptocurrency. ^[2]

Did not use game currency and stocks,

Virtual currency as

The industrialization of virtual currency will form a virtual currency market. If the emergence of the stock market is industrial

First, personalized virtual currencies will

Strict access to virtual currencies

(1) The virtual currency of online games referred to in this notice refers to those issued by online game operating companies. Game users use legal currency to purchase directly or indirectly at a certain percentage. They exist outside the game program and are stored in online games by electromagnetic recording. A virtual exchange tool in the server provided by the operating company and expressed in specific digital units. Online game virtual currency is used to redeem online game services provided by the issuing company within a specified range and within a specified time. It is expressed in the form of prepaid recharge cards, prepaid amounts, or points for online games, but does not include game props obtained during game activities.

(2) The cultural administration department shall strictly enforce market access and strengthen the management of online game virtual currency issuers and online game virtual currency transaction service providers. Those engaged in the business of "online game virtual currency issuance services" and "online game virtual currency transaction services" shall be based on the "Decision of the State Council on Establishing Administrative Licensing for Administrative Examination and Approval Items That Must Be Reserved" (Order No. 412 of the State Council) and "Internet Culture Management Provisional Regulations ". Enterprises that provide the above two services must meet the relevant conditions for the establishment of a business Internet cultural unit, apply to the provincial cultural administration department where the enterprise is located, and the provincial cultural administration department reports to the Ministry of Culture for approval after a preliminary examination. "Online game virtual currency issuing enterprises" refers to online game operating enterprises that issue and provide virtual currency use services. "Online game virtual currency transaction service enterprise" refers to an enterprise that provides platformized services for users to trade online game virtual currency. The same enterprise may not operate the above two businesses at the same time.

(3) If an enterprise applies to engage in the "online game virtual currency issuance service" business, in addition to submitting relevant materials in accordance with the law, it must submit the virtual currency expression form, issuance scope, unit purchase price, return method upon termination of service in the business development report, User purchase methods (including cash, bank card, online payment and other purchase methods), user rights protection measures, technical security protection measures, etc.

(4) Engaging in "online game virtual currency transaction service" business must comply with the relevant regulations of the competent commercial department on e-commerce (platform) services. When such enterprises submit applications, in addition to the materials submitted in accordance with the law, they must submit a service (platform) model, user purchase methods (including cash, bank cards, online payment and other purchase methods), user rights protection measures, User account and real-name bank account binding, technical security measures, etc.

(5) An enterprise that has been engaged in the issuance or trading of online game virtual currency shall apply to the cultural administration department for relevant business operations within three months from the date of this notice. Those failing to apply within the time limit shall be investigated and punished by the cultural administration department in accordance with the "Interim Provisions on the Management of Internet Culture". The approval document of the cultural administration department was copied to the Ministry of Commerce and the People's Bank of China.

Virtual currency regulated transactions

(6) Online game operation enterprises shall issue online game virtual currency in an appropriate amount according to their own operating conditions and product operation. Malicious issuance for the purpose of taking up prepaid funds is strictly prohibited. The total amount of virtual currency issued by online game operating companies must be reported quarterly to the provincial cultural administration department where the company is located.

(7) Except for using legal currency to purchase, online game operation enterprises shall not provide users with online game virtual currency in any other way. When issuing online game virtual currency, online game operating companies must keep users' recharge records. The record retention period shall be no less than 180 days from the date of recharge by the user.

(8) The scope of use of online game virtual currency is limited to the virtual services provided by the exchange issuing company itself, and shall not be used to pay for, purchase physical products or exchange any products and services of other enterprises.

(9) The online game operation enterprise shall take necessary measures and appeal handling procedures to protect the legitimate rights and interests of users, and explain it in a prominent place on the website where the company provides services to users.

(10) If a user has a dispute during the use of online game virtual currency, he or she should present a valid personal identity document that is consistent with the registered identity information. After verifying the identity of the user, the online game operating company shall provide the record of virtual currency recharge and transfer, and handle it in accordance with the appeal handling procedure. When the legitimate rights and interests of users are infringed, the online game operation enterprise shall actively assist in evidence collection and coordinated settlement.

(11) If an online game operation enterprise plans to terminate its product and service provision, it must announce it 60 days in advance. When the service is terminated, for virtual currency that the user has purchased but has not yet used, the online game operating company must refund the user in fiat currency or other methods accepted by the user.

Any online game operation company that has ceased service for 30 days due to its own service interruption, technical failure, etc., shall be deemed to be terminated.

(12) Online game operation enterprises shall not change the unit purchase price of online game virtual currency. When adding new types of virtual currency issuance, they shall report to the cultural administration department for the record according to the contents of the materials listed in Article 3 of this notice.

(13) If an online game operating company does not support online game virtual currency transactions, it shall take technical measures to prohibit the online game virtual currency transfer function between user accounts.

(14) Online game virtual currency transaction service companies When providing online game virtual currency related transaction services, the seller user must require the seller's user to use a valid identity document for real-name registration and require it to bind a domestic bank account consistent with the real-name registration information. Online game virtual currency transaction service companies must retain relevant transaction records and account records between users, with a retention period of not less than 180 days from the date of the transaction.

(15) Online game virtual currency transaction service enterprises shall establish a system and technical measures for accountability for illegal transactions, strictly identify the authenticity of transaction information, and prohibit illegal transactions. If the online game virtual currency is known to be illegally obtained or received a report and verified, it shall promptly delete the false transaction information and terminate the provision of transaction services.

(16) Online game virtual currency transaction service enterprises shall not provide transaction services for minors.

(17) Online game virtual currency issuing companies and transaction service companies shall actively take measures to protect the security of personal information, and must actively cooperate and provide relevant records when relevant departments investigate according to law.

(18) Where an online game operating company provides virtual currency transfer services between users, it shall take technical measures to retain transfer records, and the relevant records shall be kept for not less than 180 days.

Virtual currency strengthens supervision

(19) All localities shall cooperate with the public security organs to strictly rectify the requirements in accordance with the requirements of the Ministry of Public Security, the Ministry of Culture and other departments' "Notice on Regulating the Order of Online Game Operation and Banning the Use of Online Game Gambling" (Gongtong Zi [2007] No. 3) Gambling-style online games have severely cracked down on illegal criminal activities that use online game virtual currencies to engage in gambling.

(20) Online game operating companies shall not distribute game props or virtual currency by accidental methods such as lottery, betting and random drawing on the premise that users directly invest cash or virtual currency.

(21) Online game virtual currency issuance and transaction service enterprises shall actively cooperate with management departments to take technical measures to combat "theft", "private server", "plug-in", etc.

(22) Where online payment services are provided on the online games "private server" and "plug-in" websites identified by the Ministry of Culture, the Ministry of Culture shall notify the People's Bank of China.

Strict enforcement of virtual currency

(23) Enterprises that engage in online game virtual currency issuance and trading services without permission shall be investigated and punished by the cultural administration department at or above the provincial level in accordance with the "Interim Provisions on the Management of Internet Culture".

(24) For online game virtual currency issuance and trading service companies that violate the requirements of this notice, the cultural administration department and the competent commercial department shall notify them to make corrections within a time limit. Failure to rectify within the time limit shall be investigated and punished by the relevant departments according to law.

(25) Establish a coordination mechanism for the management of virtual currency for online games, and increase the crackdown on illegal activities such as "theft", "private server", "plug-in", illegal profits, and money laundering. Each department should communicate regularly, coordinate and cooperate, report the situation in a timely manner, and do a good job in the management of online game virtual currency within the scope of their respective duties.

(26) The online game virtual currency issued by the online game operation enterprise shall not coincide with the names of the in-game items. Provisions for the management of online game props shall be separately formulated by the cultural administration department of the State Council in conjunction with relevant departments.

Hereby notified.

Ministry of Commerce

June 4, 2009 ^[8]