Chinese banking watchdog warns of scam risks in the metaverse

The Chinese Banking and Insurance Regulatory Commission (CBIRC) has warned of the potential for scams in the metaverse.

According to CoinGeek, the CBIRC has issued a statement to remind local investors to beware of fraudsters targeting innocent victims using metaverse-related projects.

The CBIRC claimed the metaverse had become a ‘hotbed of financial crime’ with scammers absorbing capital from unsuspecting victims.

The Commission also highlighted in the statement some of the key scams found in the metaverse, including the packaging of metaverse-related concepts such as AI, AR and VR into a hi-tech package. These packages can be touted as the future of the metaverse, funds can be raised and then the scammers can take off with the money.

The office of Inter-Ministerial Joint Conference on Disposal of Illegal Fund Raising urged Chinese investors to duly report any scammers they may encounter on metaverse projects.

The office said, “The fraudulent activities under the banner of “Metaverse,” which is more attractive and deceptive, and participants are prone to property damage. The public is requested to enhance their awareness of risk prevention and identification capabilities, and beware of being deceived.”

JP Morgan recently became the first bank to join the metaverse, opening a virtual room on Decentraland, a decentralised virtual world.

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