Wednesday, January 9, 2008

New Policy in Second Life regarding in-world “banks”

Linden Lab has found a new way to disappoint some residents after the collapse of Ginko Financial, and other related happenings (casino’s, sploders…..)

From the official Linden Lab blog:

“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.”

Now, to my point of view, it is understandable what they are trying to do, and at least they are giving some time before having this rule effective. Every in-world bank has the chance to make their operations legal, and make their customers aware of the new situation.

I can imagine that every resident, who has money at a bank, will now start to panic, and withdraw all their money, to be sure it is done before January 22nd. But is that possible?

I have learned that the “Whitfield-Hastings & Jenkins” bank has frozen all accounts. This is a security measure from their side, as, when every customer would withdraw their money, the bank would go bankrupt and have no meaning of existence anymore.

as far as we can see now, the only thing that will happen is, that we will STOP the
"in WORLD ATM´s" and the "in WORLD activities" to match the rules of LL.
This will not mean, that we are stopping business, but we do need the time to
create a system that works for LL and for us and certainly for you.”

All Second Life banks and investment institution are trying to find a way to match the new LL rule, and this morning, there was already some white smoke coming out of the chimney of the Whitfield-Hastings & Jenkins organisation.

“We the WHJ are not going to run away with your money, we will stand here aside you, to show the WORLD and the SL/LL that even this can be managed without letting anyone stand in the rain.”

Later today, they will give some clear answers, how they are going to solve and overcome these unexpected obstacles by Lind Lab.


Anonymous said...

Well, I totally understand LL actions in this case, specially after the Ginko affair. SL banking is, sometimes, a pyramid scheme, that was the problem in Ginko and in other banks.
Maybe is becuase my mother says: "Nobody sells Euro for 90 cents." but i can't trust someone promising a 5% interest weekly.
Anyway i don't think all SLbanks are trying to take the money of people, but we all have to be careful and not trust people offering high interest, inworld or throu webpages now they can't use ATMs in the grid.

Looker Lumet said...

You are completely right, Raul, we can not trust the first one who comes by, but I am convinced that there are organisations which have the best intentions. And it is interesting to see how they are changing their policies to meet Linden Lab's rules. That is why I am following with most interest the WHJ organisation, to see how they will solve this issue.