Governments Enter Metaverse Fray: Will Regulation Be Far Behind?

The Metaverse industry, in association with the non-fungible tokens (NFTs), has become one of the hottest tech sectors in recent months.

Financial experts even projected that in the near future, the market valuation might be worth billions of dollars.

Limitless potential, however, is a favorable point for cyber crime.

For the first time in history, the Metaverse topic was discussed during China’s most important annual political meetings – China’s Two Sessions.

China Will Have The First Metaverse Regulation?

The “Two Sessions,” also known as or Lianghui, is one of the national level key events in China. This year, the meeting took place on Saturday March 5th. The involvement of Metaverse in the scope of the event is one of the major highlights.

In recent times, the term “metaverse” has become popular among Chinese cryptocurrency advocates.

The space is rapidly expanding, especially as tech behemoths enter the fray. Tencent Group, the world’s leading internet and technology corporation, submitted 100 metaverse-related trademarks for its messaging app, music streaming platform, and game.

Other Chinese multinational technology giants, including ByteDance, NetEase, and Baidu, have also applied for metaverse patents.

Kong Falong, a deputy delegate to the National People’s Congress and party secretary of a rural credit cooperative in southeastern Jiangxi province, proposed forming a new metaverse national research agency during the meetings.

The delegate also emphasized the critical need for adequate regulation to manage data security, limit speculation, and protect information in the face of mounting industry concerns.

According to Zhang Ying, a member of the Chinese People’s Political Consultative Conference, the metaverse is subject to regulation, and the government should begin to react.

The future of the metaverse in China is a big question because China is well-known for having strict Internet restrictions.

Previously, regulators banned cryptocurrency trading, leading to increased control of the gaming industry. Many authorities have issued warnings regarding investing in stocks related to the metaverse as a result of the rise of virtual universes.

Despite claims of a government ban on NFT, China appears to be open to digital assets and the larger picture of the metaverse. It is worth noting that China’s approach is frequently different from that of the rest of the world.

However, China is clearly one of the countries that recognizes the potential of the metaverse.

The government tends to support the development of metaverse technology as long as the user experience is reasonable and within the regulatory framework, as noted by Tencent CEO Martin Lau.

South Korean Presidential Nominee Launches Over 22,000 NFTs

There are only two days until South Korea’s presidential election in 2022, and the race is becoming more thrilling with the inclusion of non-fungible tokens.

Yoon Suk-yeol, a Conservative Party candidate, made an outstanding move in the last stages of his campaign by launching 22,329 NFTs.

These collectibles, which were released on Monday, represent his photographs and videos and will serve as an effective strategy to persuade younger voters.

The plan appears to be working, as recent polls show Yoon is currently holding a slim lead with 39% of votes while the Democratic nominee received 38%.

South Korea, like China, is not completely open to crypto tokens. Although the business sector is actively investing in the metaverse, the major concern is regulatory and legal barriers. It is illegal to publish NFT games, and it is also prohibited to issue tokens.

The metaverse, on the other hand, is less constrained.

In fact, recent news indicated that the Ministry of Science, ICT, and Future Planning (MSIP) will invest 223.7 billion won in the national metaverse ecosystem as a solid backbone for the growth of technology firms and industries.

Previously, entertainment industries were also early adopters in the field. As a result, government backing will help to promote the development of digital technology.