- The CEO of CoinFlip said that Metaverse companies that establish strong codes of conduct will likely attract the most users.
- Ben Weiss said that any new regulations for cryptocurrency are unlikely to impede the growth of the metaverse.
- Weiss told Insider that tax regulations and other rules that apply in the real world will also apply in virtual worlds.
The metaverse is generating tremendous excitement, from Wall Street to major brands who see it as the future of the internet and the next big thing.
However, people generally don’t quite know what to do with the shiny new concept, and aren’t sure what to expect in its virtual worlds.
It’s the early days. But the metaverse is likely to be the best at setting up code of conduct and policing for a secure virtual environment, according to Ben Weiss.
“You don’t want a metaverse where people say racist things, where people commit crimes, or where people act unruly,” Weiss, CEO of crypto ATM operator CoinFlip, told Insider in a recent interview.
“So the companies that have the best regulations in their core field are probably the ones that people will want to join.”
On a large scale, the metaverse offers immersive digital worlds where people can use avatars to work, shop, socialize, and play games. Some commentators believe that it could replace the real world where people live their lives. Others argue that this will not happen if they need to wear virtual reality glasses or augmented reality headsets.
A battle for control of the metaverse is taking place between the original crypto companies and big tech like Facebook, which has been renamed Meta. Virtual game worlds like Fortnite and Roblox are already huge.
However, the metaverse is still in its early adoption stage, and developers are working on the deep technology behind it. Weiss – who believes that many virtual worlds are inevitable – thinks the metaverse is probably a decade away from being commercially viable.
Like most new technologies, it will first be used by a small part of society before spreading to society as a whole, according to Weiss.
“For the metaverse or any technology to work, you only need a few percent of the people to start,” he said. “You don’t even need the majority of people to know it to succeed and gain momentum.”
Cryptographic technology is central to the metaverse, according to Goldman Sachs, because it allows people to securely own assets that they can use freely across different platforms. But regulators such as the Securities and Exchange Commission are eyeing the rules for crypto assets.
Asked about the potential impact of this on adverse growth, Weiss said that the rules of virtual worlds will not only be dictated by governments, but also by companies themselves.
“The Securities and Exchange Commission has been looking into cryptocurrencies more – and we welcome that,” said the CoinFlip president.
“There is likely to be regulation in terms of service from the group or company — whatever that means — and that goes beyond mere cryptography: you can’t commit a crime in the metaverse. You can’t say hateful things in the metaverse.”
“Just how do we have regulations in terms of service when we use products, there’s probably that kind of regulation here as well.”
For transactions, Weiss expects the regulations to treat these transactions the same way they would in the real world. He believes that the metaverse operator will not take any responsibility when you send money to a friend in his virtual world.
“For example, if you go into the metaverse and trade bitcoin, you will have exactly the same tax effects than if you do so outside the metaverse,” he said. “Those regulations that exist in the real world, to the extent possible, also apply in the metaverse.”
“So I actually think it wouldn’t be hard to have regulation. If it could happen in the real world, it could happen in the metaverse.”
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