The Chinese government's Ministry of Culture and Ministry of Commerce has announced that, "The virtual currency, which is converted into real money at a certain exchange rate, will only be allowed to trade in virtual goods and services provided by its issuer, not real goods and services."

Information Week says that "The ruling is likely to affect many of the more than 300 million Internet users in China, as well as those in other countries involved in virtual currency trading. In the context of online role playing games like World of Warcraft, virtual currency trading is often called gold farming.

"The ruling is likely to affect many of the more than 300 million Internet users in China, as well as those in other countries involved in virtual currency trading."

The China Daily reports that "The government also spells out the definition of the virtual currency for the first time, which includes prepaid cards of the virtual game, but excludes any outfit such as costume and weapon in the game..."

How does this effect gold farming? Simple, the Chinese government has effectively stated that you can't swap in-game currency for real currency... or vice versa.