Chinese regulator warned citizens about the dangers of the metaverse

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The China Banking and Insurance Regulatory Committee (CBIRC) has outlined the ways in which scammers profit from the metaverse.

The agency has issued recommendations for citizens visiting the Metaverse. CBIRC emphasizes that the hype around the metaverses attracts not only technology enthusiasts and investors of all levels, but also a large number of attackers.

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The banking regulator identifies several types of fraudsters.

The first are pseudo-tech companies that promise their customers the integration of high technologies such as artificial intelligence and virtual reality into their business. After attracting investments, pseudo-companies cut off all contacts with investors and hide with money.

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The second are blockchain projects based on play-to-earn (P2E). Such scammers promise their investors high returns for investing in their game token and also hide with the proceeds. They, according to the CBIRC announcement, often advertise real estate in the metaverses in order to generate excitement among users.

“Scammers use the word ‘metaverse’ when promoting their products because they understand that this topic is the most attractive to people right now. We encourage citizens to raise their awareness of online scams,” the regulator said in a statement.

Last week, the Hong Kong regulator said that NFTs and metaverses are the main threats of 2022.

Source: Bits

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