Breaking: Chinese State Media Issues Warning Against Metaverses

Prashant Jha
December 15, 2021 Updated April 9, 2024
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After an all-out ban on cryptocurrency trading and mining, the Chinese government might go after the latest hype in the crypto market- metaverse. The Chinese state media has issued a warning against the metaverse and cloud mining scams, according to a tweet from Chinese insider 8BTC. The report highlighted that the scammers have been actively using the Metaverse terms in their scams to lure more people.

Metaverse has gained a lot of interest in mainland China despite Beijing’s strict crypto policies. Some of the biggest technology giants such as Tencent, NetEase, and Tiktok parent company ByteDance, all have invested heavily in the Metaverse market.

The term “metaverse” is made up of the prefix “meta” (meaning beyond) and the stem “verse” (a back-formation from “universe”). It is most commonly used to describe the future iteration of the internet, which will be made up of permanent, shared, 3D virtual spaces linked into a perceived virtual universe.

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Will Beijing Clampdown on Metverse as Well

In 2021, Chinese authorities have carried out a series of policies to put a blanket ban on the use of cryptocurrencies as well as crypto mining. As a result of the crackdown, China’s Bitcoin mining share fell from over 60% to near zero in September.

While Metaverse takes the concept of NFTs to the virtual world, with no regulations in place the Chinese authorities might increase scrutiny quite similar to other digital assets. The growing number of scams related to metaverse is only going to give the authorities more reasons to issue stricter policies against it.

China has banned cryptocurrencies on numerous occasions in the past, however, the decentralized nature of the market often offers a way to bypass the ban. In the wake of a complete ban on foreign crypto exchanges, Chinese traders have started using defi market and Dex platforms more often.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.