Linden Lab announces ban on virtual banks in Second Life

Virtual world, Second Life, has banned in-world banks unless a real bank outside Second Life runs them.

Second Life is a virtual world, which has attracted serious amounts of controversy. Everything in Second Life is created by the users, which leads to some questionable behaviour at times.

There has been several real life lawsuits regarding Second Life with the more tame involving people stealing other peoples property in Second Life.

Second Life has recently saw the the collapse of Ginko Financial in August 2007. Since then, 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.

In a recent blog announcing the new rule, Linden Lab said that while they don’t usually interfere with resident-to-resident conduct, they felt that these institutions presented a unique and substantial risk to Linden Lab and so, could not let the activity continue.

The ban is effective as on the 22nd of January and Linden Lab encourages operators of such establishments to “settle up on any promises” they have made.

Violation of the new laws (terms, rules, whatever you want to call them) may result in cancellation of account or loss of land.