6683 0 3 econsultancy_xml <p>In a <a href="http://blog.secondlife.com/2008/01/08/new-policy-regarding-in-world-banks">post on its blog</a>, it said the schemes, if left unchecked, posed <em>“unique and substantial risks”</em> to the financial health of the much-hyped community:</p> <blockquote> <p> <em>“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.”</em> </p> </blockquote> <p>Linden Lab - pretty optimistically – has always said it would limit its role in policing members' activity in <a href="http://secondlife.com">Second Life</a>. </p> <p>But it has already banned gambling and said it had no <em>“workable alternative”</em> other than to step into the banking arena. </p> <p>It said it had received complaints about several in-world ‘banks’ that ended up leaving depositors with nothing to show for their investments – the most high profile of which was Ginko Financial, which <a href="http://www.wired.com/gaming/virtualworlds/news/2007/08/virtual_bank">declared itself insolvent</a> last August.</p> <p>Linden Lab added:</p> <blockquote> <p> <em>“As these activities grow, they become more likely to lead to destabilization of the virtual economy. At least as important, the legal and regulatory framework of these non-chartered, unregistered banks is unclear.”</em> </p> </blockquote> <p>According to <a href="http://www.techcrunch.com/2008/01/08/virtual-banking-banned-in-second-life">TechCrunch</a>, Second Life banks are now being hit by a run on their funds as residents seek to withdraw their cash before the ban comes into force. What a complete mess.</p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph>In a <Link URL="http://blog.secondlife.com/2008/01/08/new-policy-regarding-in-world-banks" Window="Self">post on its blog</Link>, it said the schemes, if left unchecked, posed <Quote>“unique and substantial risks”</Quote> to the financial health of the much-hyped community:</Paragraph> <Block> <Paragraph> <Quote>“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.”</Quote> </Paragraph> </Block> <Paragraph>Linden Lab - pretty optimistically – has always said it would limit its role in policing members' activity in <Link URL="http://secondlife.com" Window="Self">Second Life</Link>. </Paragraph> <Paragraph>But it has already banned gambling and said it had no <Quote>“workable alternative”</Quote> other than to step into the banking arena. </Paragraph> <Paragraph>It said it had received complaints about several in-world ‘banks’ that ended up leaving depositors with nothing to show for their investments – the most high profile of which was Ginko Financial, which <Link URL="http://www.wired.com/gaming/virtualworlds/news/2007/08/virtual_bank" Window="Self">declared itself insolvent</Link> last August.</Paragraph> <Paragraph>Linden Lab added:</Paragraph> <Block> <Paragraph> <Quote>“As these activities grow, they become more likely to lead to destabilization of the virtual economy. At least as important, the legal and regulatory framework of these non-chartered, unregistered banks is unclear.”</Quote> </Paragraph> </Block> <Paragraph>According to <Link URL="http://www.techcrunch.com/2008/01/08/virtual-banking-banned-in-second-life" Window="Self">TechCrunch</Link>, Second Life banks are now being hit by a run on their funds as residents seek to withdraw their cash before the ban comes into force. What a complete mess.</Paragraph> </FormattedContent> 2008-01-09T10:22:00+00:00 0 1 econsultancy_xml <p> <strong>Second Life has announced a ban on virtual banking in the 3D online world in a bid to prevent the <em>“destabilisation”</em> of its economy.</strong> </p> <p>Linden Lab, the virtual world’s creator, said it had been forced to intervene after receiving complaints about a string of dodgy in-world financial offerings that promised<em> </em>unfeasibly high interest rates for investors.</p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>Second Life has announced a ban on virtual banking in the 3D online world in a bid to prevent the <Quote>“destabilisation”</Quote> of its economy.</Emphasis> </Paragraph> <Paragraph>Linden Lab, the virtual world’s creator, said it had been forced to intervene after receiving complaints about a string of dodgy in-world financial offerings that promised<Quote> </Quote>unfeasibly high interest rates for investors.</Paragraph> </FormattedContent> false 2054 364816 Second Life bans virtual banks false 2008-01-09T10:22:00+00:00 second-life-bans-virtual-banks 2009-04-28T23:03:16+01:00 2009-04-28T23:03:16+01:00 304