As the Metaverse gets more popular in China, the country’s banking and insurance regulator is worried about more people getting scammed out of money and insurance.
China’s banking and insurance regulator has warned investors not to invest in companies that use the Metaverse to raise money illegally.
Regulators in China say they don’t want people to fundraise in a way that doesn’t make sense.
China’s banking and insurance regulator is trying to stop people from raising money for the Metaverse.
In a Friday notice, the China Banking and Insurance Regulatory Commission warned that “unknown groups” were making up “false Metaverse investment projects,” and that they were making up claims to get public funds. Metaverse Investment Project and Metaverse Chain Tour are two projects that it thinks are selling the Metaverse storey to illegally raise money. The notice says that these two projects are the ones that should be avoided.
The regulator said that criminals defraud investors by making a lot of noise about the Metaverse and “tricking people into investing by exchanging virtual currency.” The regulator went on to say that Metaverse virtual currency and digital real estate were other places where people were trying to raise money illegally.
As of right now, the Metaverse is a term for a new kind of Internet that will let people connect, play, and work in virtual worlds. Cryptocurrency fans think that blockchain technology will play a big role in the Metaverse of the future because it will allow users to get tokens for their work. China has sent out a warning notice about the Metaverse, which is becoming more popular with businesses and investors all over the world. In October, Facebook changed its name to Meta, and Mark Zuckerberg said that the company’s new goal was “to help bring the Metaverse to life.” The hype for the Metaverse reached a fever pitch at that time. Immediately after the announcement, projects like Decentraland and The Sandbox saw their tokens rise, and rare virtual world plots sold for millions of dollars. This is because the Metaverse is a new type of cryptocurrency.
The Metaverse is also a big hit in China’s private technology field. People who work for big tech companies are based in China, like Tencent and NetEase. In China, the Metaverse isn’t very crypto-focused because the country has been very strict about the space. In response to these developments, regulated versions of the Metaverse based on virtual and augmented reality as well as social media and games have taken off. People in this field even have a government-backed group to help them work.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.