China Warns people against Metaverse fundraising scam

The Chinese body warned people to remain away from the current active scams of Metaverse investment. 

In the present time, Metaverse and Web3 are the top trending topics in the crypto industry. The majority of the people believe that Blockchain will play a key role to provide a real Metaverse and Web3 experience in the future. Right, many big tech companies are giving their possible efforts in Metaverse-based initiatives to make a significant position in the world. 

On 18 February, China Banking and Insurance Regulatory Commission published its public statement against the ongoing scams with the name of Metaverse-based investment projects. 

The Commission stated that many Metaverse-based Investment projects are currently live and they are attracting people to get investment by utilizing the fake hype of Metaverse. In particular, they named two fake Metaverse projects Metaverse Investment Project and Metaverse Chain Tour.

The regulatory body also stated that such Metaverse-based fundraising platforms are not only collecting funds wrongly but also using crypto assets to convert funds in the investment, so it will be prohibited under the laws of the country. 

China love for blockchain technology 

In mid of last year, China imposed a blanket ban on the crypto Industry but introduced better legislation to allow the Companies to work on blockchain technology to bring better Innovations to the country. 

Around a month ago, the government-backed blockchain association announced that they will give a better Ecosystem for the people who want to go with NFTs projects, but outside the use cases of crypto assets under compliance. 

So here we should surely consider that China-based Companies will show a high scale interest in Metaverse because of better support to use blockchain technology. Right now Tencent, NetEase, ByteDance, and Alibaba like companies have hands significantly in Metaverse-based projects investment but surely these are not going to be crypto-centric.

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