A theft within Second Life has begun a debate over what authority regulatory agencies may have in the virtual world, reports BusinessWeek.

The incident that started the conversation involved the theft of 10,000 Linden Dollars, approximately $40 in real currency. The theft was pulled off by a hacker who gained access to an in-world stock exchange.

The theft is minor in real terms but it's sparked the question of whether real-world agencies need to be overseeing over such virtual exchanges. With more and more people making real money within Second Life and other virtual worlds, some feel regulatory protection is increasingly necessary.

Others see the wide-open nature of environments like Second Life are an asset, allowing them to make up their own rules. In particular there are worries that the US government will barge in, attracted to the potentially-taxable dollars being made by selling goods and services.