Posts Tagged ‘china’

Virtual To Real Currency Restriction Risk: China

When operating a business in foreign countries, currency exchange and repatriation risks are added to risk management planning and strategy. While the U.S. Government has made no policy (yet) against currency conversion from virtual to real, China's Government has. In the article "China bars use of virtual money for trading in real goods", the official ruling is aimed to prevent a "possible impact on the real financial system". In a way similar to foreign currency exchanges, virtual to real currency exchanges also have variable exchange rates, commissions, and value-added taxes in many cases. Virtual businesses operating in China can no longer trade virtual currencies, such as those used for online gambling or "pre-paid cards of cyber-games" for real world products and services.

Read more...