China already banned Q-Coin, product of the chinese company Tencent QQ, because people started trading it for the real-world goods and it became a possible threat to chinese yuan.
QQ coins are still very much alive and well - it is simply that they can't be exchanged for RMB but instead only for the purchase of goods and/or services (basically this was to stop one company from effectively being able to create inflation by arbitrarily printing its own "money" which if course is not really the same situation with Bitcoins).
Also what is *legal* is not the same as what is *enforced* and in fact what is *common practice*.
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The official Xinhua News Agency reported in November 2006 that the Chinese central bank may begin supervision of virtual currencies as they could affect the value of the yuan. The People’s Bank of China would put Q-coins issued by Tencent Holdings Ltd. under its oversight if they entered wider circulation, Xinhua reported at the time.
Virtual currency may only be used to buy online game items, the Ministry of Culture said in today’s statement. Game operators must provide the ministry with information about their virtual currencies, according to the statement.
Virtual currency may only be used to buy online game items, the Ministry of Culture said in today’s statement. Game operators must provide the ministry with information about their virtual currencies, according to the statement.
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Having seen the increase of illegal currency trade and its impact on the economy, the Chinese government banned Q-coins for purchasing real goods and services in 2009.
So only Tencent QQ goods and services could be purchased with Q-Coin.
