Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

China warns against using metaverse as a tool for illegal fund-raising

Published 02/18/2022, 02:27 AM
Updated 02/18/2022, 03:51 PM
© Reuters. FILE PHOTO: A visitor is pictured in front of an immersive art installation titled "Machine Hallucinations — Space: Metaverse" by media artist Refik Anadol, which will be converted into NFT and auctioned online at Sotheby's, at the Digital Art Fair, in

BEIJING (Reuters) -China's banking and insurance regulator issued a warning on Friday against using the metaverse as a tool for illegal fund-raising, amid widespread interest in the country's private sector.

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.

© Reuters. FILE PHOTO: A visitor is pictured in front of an immersive art installation titled

Investors,entrepreneurs, and established Chinese tech giants have piled into the country's "metaverse", described as a virtual shared space that blurs the boundaries between the online and offline worlds. But the fervour has received mixed reactions from Chinese authorities.

While the ruling Communist Party and state media have issued calls for caution and warned about the risk of a metaverse bubble popping due to over-speculation and financing, some local governments have held symposiums on the topic and also described how it could be used to spread Party ideology.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.