China, government warns about fraud in the metaverse

The Chinese government, through its financial supervision system, has released a note in which warns against fraud related to technologies operating in the metaverse. This new high-tech sector is in fact attracting a large number of scammers, given the general interest in virtual and augmented reality. Investors are mainly fooled with artificial intelligence, VR and AR integration offerings to their existing technologies with the promise of instant yield increases. Then there is a form of scam linked to blockchain P2E, or “pay to earn”: investors are involved in purchases of NFTs and cryptocurrencies only to be stolen from the (real) money spent to no avail. Another system used is that of buying and selling of virtual properties within the metaverse, which are granted at prices much higher than their value: the government suggests to read up as best as possible on the real product of the tokens that are sold. At the moment, China is one of the most permissive countries in terms of NFT and trade in the metaverse, and it is no coincidence that some giants in the country such as Tencent, Alibaba and Huawei have already registered several brands in the virtual space. In China, there is a general ban on the mining of cryptocurrencies, but the enthusiasm for new technologies knows no brakes: for example, Shanghai has included blockchains in its five-year plan for public services.