The metaverse universe is getting a lot of attention in China. However, fraud cases on the metaverse have also started to increase. China’s banking and insurance regulator has expressed concern over the increasing number of fraud cases.
China’s banking and insurance regulator has issued a statement warning companies that use the metaverse for illegal fundraising.
China Attempts to Block Illegal Fundraising on the Metaverse
China’s banking and insurance regulator is attempting to curb illegal fundraising on the metaverse.
According to a Friday announcement from the China Banking and Insurance Regulatory Commission; It has raised the alarm against unknown groups producing fake metaverse projects and making false claims to use public funds.
Regulator stated that criminals are defrauding investors by creating hype around the metaverse. The regulator stressed that attention should be paid to other areas of fraudulent fundraising, including metaverse virtual currency and digital real estate.
Metaverse has also attracted great interest in China’s private technology sector. Major technology firms in the country, including Tencent, NetEase, ByteDance, and Alibaba, have started to step into the metaverse.
52139
