SecondLife Bans Unregistered In-World Banks

Posted by timothy on Wednesday January 9, 2008 @07:59AM from the it-all-seems-a-bit-fictional dept.

GuruBuckaroo writes "Virtual Ponzi schemes — pardon, "Banks" — have finally been given the boot by the policymakers at Linden Lab's Second Life. According to the company's latest blog post: '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.'"

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Re:That should've been done day one. by Kris_J · 2008-01-09 10:19 · Score: 3, Informative

It's a shame the high profile failure wasn't actually a Ponzi scheme. The insanely high interest rate was supported by the massive profits of in-game gambling. The bank failed when gambling was banned (or seriously reigned in).