Men Can't Play Female Characters in Chinese MMO

So, gamers all over are talking about Aurora/Shanda Entertainment's sudden decision to ban guys from playing female characters in the Chinese MMORPG King of the World. Apparently, tens of thousands of men have had their accounts frozen for being "online gaming transexuals." Now in order to play a female character, gamers will have to prove their gender using a webcam. As a girl whose main is a male gnome in a guild full of guys playing hot Night Elf and Draenei chicks, I find this incredibly cringe-worthy. First off, I'd hate to be in an MMO in which everyone knew for certain that all the female avatars were girls. And secondly, can you imagine the horror that would occur (at least in the US) if you invited a bunch of guys to "prove" their gender via webcam? If not, well... I think Penny Arcade has touched on that already.