Risk Markets And Politics

Saturday, January 20, 2007

The LindeX Currency Exchange

In the wake of the Neteller arrests this week, alternate currencies are unfortunately a bit less interesting. While the DOJ has not yet moved against gambling in virtual worlds such as Second Life, it is only a matter of time now. When the UIGEA was passed, a person identifying himself as Linden Lab's lawyer offered some reasons why UIGEA should not apply to Second Life, but promised full cooperation with any investigations.

Now that the Neteller founders are being prosecuted on money laundering in conjunction with racketeering laws, the existence of The LindeX Currency Exchange will become increasingly controversial. (By the way, here is a virtual casino property that was auctioned on EBay.)

When I first mentioned ways to gamble with real money in virtual worlds in July, reaction was muted. To this day at Terra Nova, there is almost no discussion on this issue although its authors pride themselves on straddling real and virtual economies. Nonetheless, more people are starting to ask questions.

One moral of this story is that we should eschew legal "hacks". I hope to have something more constructive to say in a couple of days.

[Cross-posted from Midas Oracle]


  • This comment has been removed by a blog administrator.

    By Blogger David, at 7:26 AM  

  • It will be interesting to see what will happen with situations like these in the future..

    By Anonymous Mike, at 8:26 AM  

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