China Warns Over Metaverse-focused Scams
Main page News, China, Metaverse, Regulations

China's banking regulator warned on Friday against using the metaverse as the technology has become one of the main schemes for fraudsters to steal money through fund-raising for real estate in virtual reality, Reuters reports. According to the report, the China Banking and Insurance Regulatory Commission noted that some companies were advertising illegal schemes related to the metaverse.

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"Beware of being duped, and if you find clues of suspected illegal crimes, please actively report this to the relevant local departments," the regulator said.

The Chinese watchdog also said scammers are advertising the metaverse in conjunction with play-to-earn games and short-term investment strategies. Although the regulator did not clarify what companies are scamming people, it noted that some even sell the "metaverse currency" to induce the public to buy and invest in fraud.

Hong Kong Cybersecurity Watchdog Names NFTs & Metaverse as Key Threats in 2022

Earlier in February, a department of Roskomnadzor, Russia's Internet regulator, started exploring the opportunities and risks of metaverses. According to reports, the Scientific and Technical Center found that risks associated with the metaverse might boost manipulation and disinformation.

The department's analysts believe the dominance of digital currencies in the virtual world will contribute to the violation of political boundaries "due to the fact that current tax codes and regulations cannot regulate the chain of sales in the metaverse."

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