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Chinese Regulatory Commission Issues Notice against Malpractices Related to Metaverse Projects

UTC by Sanaa Sharma · 3 min read
Chinese Regulatory Commission Issues Notice against Malpractices Related to Metaverse Projects
Photo: Depositphotos

The formal notification explained the 4 different methods by which phony people are wrongly making gains while highlighting some impressive work under the enticing name of Metaverse.

The Chinese government’s insecurities towards the digital space are increasing by the day. Following the ban on crypto trading in the country, the Chinese government has now released a warning against companies working on metaverse projects.

In a recent notice authorized by the Chinese Banking and Insurance Regulatory Commission, the council has warned the people of China against the counterfeit undertakings of the companies associated with metaverse development. The notice emphasized the malpractices carried out by imposters and scammers to illicitly steal money in the name of such projects while depriving the rightful citizens of their hard-earned money.

The formal notification explained the 4 different methods by which phony people are wrongly making gains while highlighting some impressive work under the enticing name of Metaverse. The most common way to scam people is by vouching for some kind of high-tech integration of artificial intelligence and virtual reality support. Such schemes more often than not, engage investors with their massive return claims. The thieves consequently flee the picture after receiving the money, resulting in the investors being duped of their capital.

The second method observed by the authorities is to promise investors highly efficient play-to-earn (P2E) projects, wherein, such fraudsters assure people of excellent gains for backing in the indigenous gaming token. The con-artists eventually run away with the money once they achieve a pre-decided objective.

There are some other significant schemes that these projects utilize that involve talking greatly and exaggerating about the metaverse real-estate to generate hyper purchases among the general audience.

The Officer of Inter-Ministerial Joint Conference on Disposal of Illegal Fund Raising specifically asked the people of the country to spread awareness and be more cautious when it came to purchasing things off metaverse projects. It also suggested people convey any dubious activities taking place on similar lines. The official warning, while calling the metaverse realm enticing yet misleading, requested parties to be aware of the immense property damage suffered by people via false promises. It also asked the public to elevate their cognition of the projects and the metaverse space, while examining their abilities before investing in such areas.

Even though there is a pan-China ban on the trading and mining of Cryptocurrencies in China, the Chinese government has reflected a little less stringent policy on Non-Fungible Token and Metaverse assignments. Since China still seems dicey about the whole concept of Metaverse, a number of technology companies like Tencent, Huawei, and Alibaba have already filed for a Metaverse trademark. Moreover, Shanghai has been involved in the utilization of Blockchain and metaverse for general public services in its five- year development scheme.

News, Technology News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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