An organization of securities regulators NASAA on Wednesday cautioned investors against dealing with unregulated metaverse platforms offering new investment opportunities and warned them against sharing personal or account information with avatars.
“The lack of regulation in the metaverse, combined with the ability to operate from anywhere in the world, make it easy for fraudsters to hide their financial schemes,” NASAA said.
The advise mentioned that a variety of possible investment opportunities, including virtual real estate, nonfungible tokens (NFTs), and other enterprises, may be available in the metaverse, but investors need to be cautious while making any investment decision.
“Security lapses on some of these metaverse platforms while in development phase, and the ability to build fake metaverse experiences can lead to hacks, fraud, or the theft of users’ funds,” it added.
The organization of securities regulators whose aim is to protect investors from fraud has also outlined a few checklist that may be handy for people looking for investment in this emerging space.
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