The metaverse offers the securities industry a massive opportunity, but the Financial Industry Regulatory Authority (FINRA) says stakeholders must be “mindful” of the technology’s potential regulatory implications.
In a recent report titled “The Metaverse and the Implications for the Securities Industry,” FINRA acknowledged the vast potential the technology presents, noting that the global metaverse revenue opportunity is estimated at $800 billion this year. A World Economic Forum (WEF) study estimated that 15% of the global economy will be in the metaverse by 2030, reaching 700 million people, while Microsoft (NASDAQ: MSFT) estimated the market will surge to $1.2 trillion by 2030.
Gaming has championed the metaverse and accounts for the majority of users. However, other industries are building solutions on the technology, and the securities and financial services industries are no exception, according to FINRA.
In finance, the metaverse presents an opportunity for financial services firms in data visualization, virtual trading, and offering payments for virtual goods. Immersive digital twins also foster better collaboration and decision-making, especially for multinationals with multiple offices worldwide.
However, the metaverse presents unique regulatory implications, and FINRA member firms must be mindful of their regulatory obligations, the Authority says.
It reminded member firms that its rules and the U.S. securities laws are technology-neutral and still apply to the metaverse as they would to any other technology.
“Using any given technology does not absolve firms of their regulatory obligations,” FINRA report noted.
FINRA is a non-governmental organization for the securities sector, operating independently under the SEC. It oversees exchanges, brokers and brokerage firms, boasting 3,300 firms and over 600,000 registered representatives.
The Authority requested feedback on its report, especially from players in the financial services industry that have integrated the metaverse, with the deadline set for March 14 next year.
Commenting on the report, FINRA Vice President Haimera Workie said that the metaverse “is an evolving technology with both potential benefits and risks that need to be better understood.”
“We look forward to continuing to have an open dialogue with industry stakeholders to better understand the impact the metaverse could have on FINRA members and investors.”
Once the hottest buzzword in tech, the metaverse has cooled off as speculators exited the space. Today, companies like Robert Rice’s Transmira are building metaverse applications that are not in it for the hype; they are offering actual solutions, such as increasing fan engagement in sports through digital twins. The industrial metaverse has also been on the rise, with a Siemens report finding that 81% of global companies are exploring it in production, engineering, and supply chain management.
Watch: Omniscape Metaverse on the scalable BSV blockchain – Robert Rice
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Source: https://coingeek.com/finra-metaverse-to-hit-3t-by-2031-but-poses-regulatory-risks/