Moral Panics and Concerns with Online Technology

Some of the moral concerns with the continually developing digital world are things such as what is classed as real, and what is classed as not. For example, in the MMORPG Second Life there are areas where you can engage in inappropriate activities such as having sex with children. The problem is that Second Life isnt real, so should this be treated as a crime, or just a game? If it is treated as inappropriate there is the further question of how far you have to go for the police to get involved. I believe that these issues will be solved as this technology progresses and gets more complex.