- The United Arab Emirates has already unveiled its ‘Dubai Metaverse Strategy’.
- Interpol entered the Metaverse last October.
Governments around the world are trying to control crypto ships. The main reason behind this remains unregulated assets that pose financial risks to potential investors. Digital assets are an integral part of the underlying Metaverse economy, leading to an open invitation to authorities in the virtual space. But users are confident that the Metaverse will become an open and decentralized world.
Authorities have already begun investigating the Metaverse
This raises the question of how a centralized body would regulate an unregulated industry. Countries such as South Korea and Dubai have already started Metaverse efforts in their own countries. Meanwhile, UAE authorities have their own “metaverse strategy,” and the Seoul government has unveiled the beta stage of the city’s digital twin, which is now accessible to young people.
Jong-Soo, CIO of Seoul’s Smart City Police Department, told McKinsey and Company that the Metaverse will help authorities provide “higher quality services.” Moreover, he believes they can act proactively, like the concept Steven Spielberg put forward in Minority Report. He adds that virtual spaces can change people’s stances on cities.
The UAE government believes the Dubai Metaverse strategy will create around 42,000 jobs by 2030. The country is striving to become a global metaverse hub. Middle Eastern countries have come up with innovative solutions for their citizens. In 2021, Saudi Arabia unveiled her The Line City project, but the initiative has been criticized in the past.
The International Criminal Police Organization (Interpol) has announced that they have entered the Metaverse. The move aims to make virtual spaces safe and free from malicious actors.In addition, the agency will use them for staff training and education.
Cyberspace, the Metaverse, attracts malicious actors within the sector. This increases the demand for security. Regulators such as the Securities and Exchange Commission (SEC) are unlikely to lose this hangar as far as cryptocurrencies are concerned.
No matter how badly people want the metaverse to be an open, decentralized space, it needs a body to keep evil at bay. Over time, the metaverse his utility will only increase and users will want to keep their assets safe. Just as we discussed that crypto-assets play an important role in the virtual space, authorities may also track them in the virtual space.
In that case, Central Bank Digital Currencies (CBDCs) could replace crypto assets in certain regions. According to the Atlantic Council, 114 countries representing more than 95% of global GDP have already analyzed the pros and cons of CBDCs. In the same way that the metaverse attracts global brands, it could also catch the attention of authorities.
Disclaimer
The views and opinions expressed by the author or persons named in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in crypto assets involves the risk of financial loss.
