Wednesday, January 09, 2008

'Banks' Banned in Second Life

Linden Labs has released a policy banning 'banks' in Second Life. This follows on a recent policy of banning gambling.

"As of January 22, 2008, it will be prohibited to offer interest or any direct return on an investment (whether in L$ or other currency) from any object, such as an ATM, located in Second Life, without proof of an applicable government registration statement or financial institution charter. We’re implementing this policy after reviewing Resident complaints, banking activities, and the law, and we’re doing it to protect our Residents and the integrity of our economy."

The announcement and comments are on the SL Blog. Most comments appear to be in favour, but there are some strong objections:
http://blog.secondlife.com/2008/01/08/new-policy-regarding-in-world-banks/

This raises some fascinating issues!

1. Does SL have a real economy?
2. How can businesses make money in SL?
3. Is regulation of the SL economy necessary?
4. Caveat emptor?
5. Is Ken D Linden God?
6. Will there be a 'run' on SL 'banks' and cause the economy to collapse?

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