Second Life bans virtual Banks
January 10, 2008
In an effort to protect its customers, Linden Labs has effectively banned financial institutions which are not registered as a bank in Real Life from the virtual world of Second Life. In the past there has been an increased amount of complaints by Second Life inhabitants about virtual banks offering high investment returns and not delivering on their promises.
“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.
Since the collapse of Ginko Financial in August 2007, Linden Lab has received complaints about several in-world “banks” defaulting on their promises. These banks often promise unusually high rates of L$ return, reaching 20, 40, or even 60 percent annualized. …”
Tags: Banks, Linden Labs, Second Life, Virtual Money
