Ginko Financial's folding helped
Linden come to a decision

As of Jan. 22, virtual world Second Life is instituting a ban on all virtual banks that aren't government-sanctioned in the real world.

The decision to pull the plug on virtual banks came after SL residents continued to get burned by banks unable to live up to their promises, and with at least one defaulting and going out of business, according to Ars Technica.

Though Second Life-creator Linden Labs usually stays out of such private matters, the proliferation of non-FDIC-insured banks brings about what Linden termed "unique and substantial risks" that could seriously damage SL's economy.

In July, gambling was banned in the virtual world as a result of an FBI investigation.