Virtual worlds, real risks

Life online in the world of virtual games costs real money just as it does away from the computer. Where there is money, there is fraud with law and enforcement authorities left to play catch-up. Tony Lewis and Aymen Khoury of Field Fisher Waterhouse look at an expanding jurisdiction of risk and at one country’s moves to legislate in defence.

Tony Lewis (+44 (0)20 7861 4940, Tony.Lewis@ffw.com) is a partner and Aymen Khoury (+44 (0)20 7861 4691, Aymen.Khoury@ffw.com) a solicitor with Field Fisher Waterhouse.

In June of this year, China’s Ministry of Culture and Ministry of Commerce jointly issued new regulations prohibiting the use of virtual currency to purchase real goods and services. The Republic’s Notice on Strengthening the Administration of Virtual Currency in Online Games is aimed at more tightly regulating a multi billion Yuan industry, which in recent years the authorities have been concerned has become a vehicle for illegal activities.