The Metaverse allows users to traverse a virtual world that mirrors the physical world using technologies such as virtual reality (VR), augmented reality (AR), AI and social media. social media. Now the metaverse is involved in many fields including art, real estate, digital currencies and gaming. As the metaverse comes in different forms, it is important for metaverse commissioners and users to abide by the rules. Although international law is still evolving to include metaverse-specific laws, there are several aspects of the law that must be kept in mind when dealing with the metaverse.
Determining the identity of the creators of an action in the metaverse can be difficult when the action appears as a collaborative effort made by users named after avatars. Likewise, the distribution of rights to users to access intellectual property in the metaverse may be problematic in terms of copyright infringement and the benefit of IP rights.
Breach of data protection laws
Data in the metaverse may violate various data protection requirements. There are also different aspects of informed consent.
The use of digital currencies in the metaverse is still subject to the financial regulations and fees of different jurisdictions, which may result in increased legal scrutiny on the metaverse platform.
– Kokila Alagh, Founder and Managing Partner, KARM Legal Consultants
NFT and digital currencies
While the launch of NFTs may face many legal challenges, the use of NFTs for rights in the metaverse may present more challenges than ever, especially from a regulatory perspective. of those rights. In addition, the use of digital currencies in the metaverse will remain subject to the financial regulations and fees of different authorities, which will increase the legal scrutiny on the metaverse platform.
Metaverse as an investment and trading platform
If the metaverse platform facilitates the transfer of rights and liabilities that may be considered financial transactions, the metaverse may attract financial regulations.
Criminal and criminal offences
The Metaverse tends to attract laws related to various criminal offenses such as harassment, vandalism and others.
As a major breakthrough, the metaverse has allowed many games to offer experiences based on virtual reality, which has made the industry interesting in recent years. However, the metaverse has a very high chance of attracting the necessary regulations for gambling, as most jurisdictions either completely ban or strictly regulate gambling.
It is great to see the growth and preparation of this section. At KARM Legal Consultants, we strive to push boundaries by making sure to recommend self-regulation to most of our clients. As always, KYC, AML and CFT checks are important to enterprises in the virtual reality and metaverse space.
— The author is Founder and Managing Partner, KARM Legal Consultants