The Chinese government has officially banned gold farming, declaring that virtual currency can only be traded for virtual goods and services. According to
InformationWeek, the ruling will affect "more than 300 million Internet users in China," and curtail a trade that "exceeded several billion yuan (one billion yuan is approximately $146 million) last year" while growing "20 percent annually."
According to a 2008 survey by the University of Manchester's Richard Heeks, between 80 and 85 percent of gold farmers are based in China. The process involves collecting in-game currency, then selling it via a website or PayPal to other players.
Gold farming has attracted controversy not just because it exploits certain game mechanics, but because entrepreneurs in America and Korea have hired low-cost labor in places like China to farm large amounts of gold. This has lead to accusations that gold farming outfits are sweatshops.