Chinese Authorities Warns Against Using Metaverse as Medium for Illicit Fund Raising

Chinese banking and insurance regulator on Friday issued warning against using the metaverse as a tool for illegal fund-raising. The announcement came in as widespread interest of the private sector on metaverse.

The China Banking and Insurance Regulatory Commission said in a statement published on its website that some companies were engaging in illegal fund-raising, fraud, and virtual real estate speculation.

“Beware of being duped, and if you find clues of suspected illegal crimes, please actively report this to the relevant local departments,” the statement said.

Chinse tech giants among other related stakeholders have pooled into metaverse which is described as virtual share pace that blurs the boundaries between the online and offline worlds. However, the concept received mixed reaction from Chinese authorities.