EU eyes metaverse regulation

The European Union (EU) is studying the metaverse and potential regulation, said Margrethe Vestager, Executive Vice President of the European Commission, adding that authorities needed to understand the space better before they could decide on the best course of regulatory action.

At an online event today, Vestager commented, as reported by Reuters:

Meta already in Vestager’s line of sight

Metaverses are immersive virtual spaces where people can work, play, socialize, attend events, and more. The concept began to enter the mainstream last year when Facebook changed its name to Meta to reflect its plans in the space.

Meta was already in Vestager's line of sight over its collection and use of data. If caught violating antitrust rules, companies can be fined up to 10% of their global revenue.

Monetizing metaverse experiences  

Meta promotes the view that the metaverse will succeed the mobile internet. It has made significant investments in virtual and augmented reality. While details about how brands will monetize in the different metaverses have not entered the mainstream, there is some information about that.

Brands buy property in different metaverses like they do in the real world. Digital estate value varies depending on where the property is located. Premium properties can be very valuable. A plot in Decentraland’s (MANA/USD) fashion district sold for more than a million dollars recently.

Regulators urge shift to proof-of-stake

In related news, vice chair of the European Securities and Markets Authority (ESMA) Erik Thedéen urged a shift towards the less energy-intensive proof-of-stake mining. He told Financial Times in an interview:

The former model is where miners use a plethora of powerful computers to solve complex mathematical problems. This is done to record transactions on the blockchain to earn rewards, which are in the form of new coins. Bitcoin (BTC/USD) and Ethereum (ETH/USD) both use proof-of-work.