The Financial Regulation of Virtual World Banks is Upon Us
February 27 2008 / by Austra Zubkovs
Category: Business & Work Year: General Rating: 10
The era of financial regulation inside virtual worlds has begun. How we shape such regulation will have a big impact on our broader future.
It all began when just last month Second Life (SL) publisher
Linden Lab banned all
interest-offering banks and financial institutions within
the game.
The new regulations came in response to numerous complaints filed against SL-based banks, most notably in response to last year’s Ginko Financial fiasco. Linden Lab recently posted their new policy stating that, “As of January 22, 2008 we will begin removing any virtual ATMs or other objects that facilitate the operation or facilitation of in-world ‘banking,’ i.e., the offering of interest or a rate of return on L$ invested or deposited.” Now, that crackdown is well underway.
