This link has been bookmarked by 4 people . It was first bookmarked on 09 Jan 2008, by tony curzon price.
-
11 Jan 08
Alex HalavaisIt was inevitable, after admitting that virtual casinos were really casinos, that virtual banks are now really banks. Makes you wonder whether this will be enforced in other gaming environments. Or if loansharking is illegal.
-
-
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.
-
But these “banks” have brought unique and substantial risks to Second Life, and we feel it’s our duty to step in. Offering unsustainably high interest rates, they are in most cases doomed to collapse – leaving upset “depositors” with nothing to show for their investments. 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, i.e., what their duties are when they offer “interest” or “investments.”
There is no workable alternative. The so-called banks are not operated, overseen or insured by Linden Lab, nor can we predict which will fail or when. And Linden Lab isn’t, and can’t start acting as, a banking regulator.
-
Thus, as we did in the past with gambling, 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. We ask that between now and then, those who operate these “banks” settle up on any promises they have made to other Residents and, of course, honor valid withdrawals. After that date, we may sanction those who continue to offer these services with suspension, termination of accounts, and loss of land.
We will not apply this policy to companies who submit a registration statement, charter, or other applicable license from a governing regulatory authority, or who are merely conducting marketing or education, but not accepting payment
-
Numerous residents deal with actual theft of intellectual property daily, be it through someone reselling freebie-donated content without permission, stolen items through permission exploits, server rollback failures, and other loopholes, and time and again LL has refused to do anything– even simply frowning on the behavior publicly– instead expecting people to pay substantial legal fees out of their own pocket to obtain damages against the perpetrators. Damages that often don’t even cover those legal costs.
So while I appreciate that you’re finally getting with it on many levels you’re still ways off from actually protecting your residents.
-
-
09 Jan 08
tony curzon priceAs 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.
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.