BEIJING, Feb 18 – China’s top banking and insurance authority has issued a strong warning regarding the use of the metaverse for illegal financial activities. The advisory comes amid growing interest from investors, entrepreneurs, and major tech companies in the emerging virtual world sector.
In a public statement, the China Banking and Insurance Regulatory Commission expressed concerns over reports of fraudulent schemes, illegal fundraising, and speculation involving virtual real estate tied to metaverse platforms. The regulator urged the public to stay vigilant, stating:
“Be cautious of scams. If you suspect any illegal activity, promptly report it to local authorities.”
The metaverse, a digital space where virtual and real worlds merge, has quickly gained popularity across China’s private sector. However, this rapid growth has triggered mixed reactions from the nation’s leadership and regulatory bodies.
While government officials and state media have cautioned against excessive investment and warned of potential financial bubbles, some local administrations have shown enthusiasm. They have held discussions on how the metaverse could be harnessed for innovation and even to promote government and party initiatives.
Despite the growing buzz, China’s latest warning highlights the need for careful oversight as the metaverse continues evolving in the country’s tech and financial landscape.
