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Metaverse projects have seen notable success over the past year. As these virtual worlds witnessed mainstream attention, regulators began to eye the industry as well. Recently, it is noted that the United Kingdom is taking aim at these metaverses to introduce new regulations. Moreover, the regulations also target the tech giants behind various proposed offerings. Hence, following the scenario ,the enthusiasts in the cryptosphere are concerned about how decentralized ecosystems fare.
Metaverse are subject to “Online Safety Bill”
The British government has drafted an Online Safety Bill to prevent illegal content and protect users from harmful material. Notably, the amendment also includes stringent regulations for the Metaverse projects.
Significantly, the bill expresses primary concerns over Meta. The global social media giant seeks to enter the metaverse. According to Lorna Woods and William Perrin, professor of internet law, and trustee at Carnegie UK, the technology firms should not try to escape regulations by using metaverse.
Moreover, the law professors highlighted that they feel Meta has moved the debate on to a new type of service that avoids regulations.
Meta is a threat to privacy
Meta, previously known as Facebook Inc. claims that safety and privacy is the integral part of its metaverse. Notably, the design has already committed $50 million into researching it.
However, Meta is being judged by fake news and harmful content dissemination on its social media platform Facebook. Notably such judgemental words hold little weight. In the annual report to the US SEC last week, the firm underscored that new laws and regulations regarding privacy and ecommerce may delay or impede the development of the firm’s products and services. Ultimately, such a scenario is increasing the operating costs, and requires significant management, and attention. If the firm fails anywhere, it will harm the entire business.
Decentralized dilemma of the ecosystem
Regulating decentralized metaverse projects like Axie Infinity, The Sandbox, and Decentraland is complicated. In the current scenario, most of the projects run by Decentralized Autonomous Organizations. Indeed, it seems that the regulators will have a tough time balancing online safety rules with a complete crackdown.
The virtual world’s ecosystem is significantly a conglomeration of gaming, social media, and digital finance. Hence, these world’s need their own set of tailored guidelines rather than any heavy handed approach that lawmakers largely ignorant of the underlying tech tend to prefer.
