Austra Zubkovs's Blog Posts

The Financial Regulation of Virtual World Banks is Upon Us

February 27 2008 / by Austra Zubkovs / In association with Future
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.

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