The People’s Bank of China (PBOC) issued a warning regarding the world of Metaverse and NFT tokens in November. At the time, it was underlined that these two institutions would be subject to particular oversight. Despite this, over 1,000 Chinese enterprises have submitted trademark applications with Metaverse.
Gou Wenjun, head of the PBOC’s AML and Analysis Center, warned of the hazards of digital assets during a November meeting. He claims that virtual money may be utilised for criminal financial operations due to a lack of physical protection. He mentioned “illegal fundraising, pyramid scams, and fraud” as examples.
Companies like Tencent and Huawei opted to disregard pbOC warnings and raced to register Metaverse-related trademarks like “Metaverse Satellite” and “Metaverse Exhibition.” According to the South China Morning Post, over 1360 Chinese companies have sought trademark registration relating to the Metaverse, and there were 8534 applications submitted in all.
The People’s Bank of China’s warning was not the only surfaced on the internet. On December 9, the Communist Party of China’s official publication, the People’s Daily, criticized the Metaverse phenomenon.
Trademark registrations in the new sector were not unexpected in the commercial world. One of the reasons in support is that demand for NFT is constantly increasing.
According to NFT’s sales monitoring tool Crypto Slam, NFT sales during the last seven days were $580.7 million. Profits from the sale of non-removable tokens will amount to USD 17.7 billion next year, according to Cointelegraph’s analysis.