Linden Lab Banking Policy 2008

Usually, we don’t step in the middle of Resident-to-Resident conduct – letting Residents decide how to act, live, or play in Second Life. But these “banks” have brought unique and substantial risks to Second Life, and we feel it’s our duty to step in… [T]he legal and regulatory framework of these non-chartered, unregistered banks is unclear

New policy regarding in-world banks 2008-01-09

Reuters interview with Mitch Kapor (about 1/3 into the stream):

Adam Pasick: The banking ban…were you involved in that decision?

Mitch Kapor: Let me talk about the gambling ban because that was the earlier incarnation. The Board was briefed on the situation, the staff and the company developed with the attorneys a view on what the issues were and it was presented to the Board and the Board made a decision. And so with big issues like that, the Board has to be involved in it and similarly we were aware of the issues with the banking and some time ago, despite what I think I read in the paper today – this just happened yesterday…

AP: The thing in the Wall Street Journal…

MK: Yeah I think it happened…

AP: A couple days ago, right…

MK: Or last week…

AP: The banking ban, yeah, a few weeks old…

MK: Well, it’s not a ban, right, it just says…

AP: A ban on unregulated banking…

MK: Right, if you’re going to be a Second Life bank, you have to have – you have to show that you’re chartered by a terrestrial authority to do that.

AP: To be fair, though, all of the banks that were in Second Life, none of them could meet that requirement.

MK: No they couldn’t and so they had to close down.

AP: Right.

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