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Closed-flow virtual currency is
|“||a virtual currency [that] can be used only within a game or virtual environment to purchase virtual goods or services, such as additional tools to use within a game. Virtual tools amassed by players can be traded in a game for other in-game assets or to advance to higher play levels, but they hold no value outside of the game and cannot be cashed out for dollars or other government-issued currencies.||”|
- ↑ Virtual Economies and Currencies: Additional IRS Guidance Could Reduce Tax Compliance Risks, at 4.