All exchanges MUST buy their Lindens from the LindeX. People can then buy those L$ from the Exchanges. But, in reality these will no longer be ‘exchanges’ as no one will be able to take money out of SL EXCEPT through the LindeX.
So, the exchanges are now only retailers of L$. It looks like many people will still have a significant problem getting money out of SL. This is of course the whole point of FinCEN regulations.
Now, to give users more options and make it easier to purchase L$, we’re launching a pilot program of Authorized Resellers of L$. These sites are authorized by Linden Lab to purchase L$ on the LindeX and then resell those L$ using a variety of international currencies and payment methods. To be clear: per the Terms of Service, these resellers will not be allowed to purchase L$ outside of the LindeX (i.e. they will not be able to buy L$ back from users and cash people out). The list of Authorized Resellers participating in the pilot program is available here.
They also acknowledge there is a problem with cash out time via the LindeX saying:
We know that users are also concerned about the length of the LindeX’s cashout process and the limited choice of currencies when selling L$. We’re currently investigating ways to improve that experience for users while still providing superior fraud protections, and hope to hasten the cash out process and offer new currency options in the future.
So, something is at least in the works. I expect to hear more as the day wears on.
There is still a huge amount of speculation going on in regard to the ToS change and the Lab’s issuing Cease and Desist emails to those operating L$ exchanges and building viewers that link to third party exchanges.
Linden Dollar Exchange PODEX
In one thread over on SLUniverse the participants are trying to figure out why third party exchanges are suddenly illegal. They aren’t illegal. But, they do violate the Lab’s ToS… may be. That is where the confusion is, the ToS. Continue reading →
The recent ToS change left some questions as to whether third parties could continue trading Lindens. A subsequent post on the SL Blog seems to equate “unauthorized” with Not Permitted.
The kicker is the emails being sent to the operators of Exchanges. One German operator (Milz Yue) posted on a forum:
As described on the Second Life blog, updated Second Life Terms of Service disallow trading of Linden dollars (L $) on exchanges other than the LindeX.
As operator of a third party to exchange, You Should cease Facilitating L$ trades on your exchange immediately to comply with the Terms of Service. Any virtual ‘ATMs’ or scripted objects in Second Life that are connected to your exchange should therefore be removed immediately.
Please be sure to read the complete updated Second Life Terms of Service and take the steps Necessary to comply and keep your Second Life account (s) in good standing.
Thank you in advance for your cooperation.
That may not be a perfect translation. But, it seems to make it clear, Linden Lab will be the only currency exchange in Second Life. Continue reading →
For those doing business in Second Life the Currency Exchange is a tool that can improve their profit margin when they are taking L$ out of world to RL currencies. One just has to understand how it works, which is what this Second Life Currency Exchange Tutorial is about.
If you are a resident that just needs a few Linden dollars on occasional bases to purchase something, you can still gain from understanding how the Currency Exchange works and knowing what it is and how to use it. You won’t need some of the more esoteric information I’ll provide. Knowing the basics will save you a few L$.
XStreetSL Currency Exchange
XStreetSL has a Currency Exchange, which is now owned by Linden Lab. This is a place where you can easily buy and sell L$ as well as other stuff. It is a fun place to shop also and has loads of free stuff. There is no StreetSL fee for moving funds between SL and PayPal. Using PayPal is the only way to take cash out of XStreetSL. URL: https://www.xstreetsl.com/