Tr?id=566623520170033&ev=PageView&noscript=1

State Regulators Warn Investors About The Metaverse

Posted on September 19th, 2022 at 12:51 PM
State Regulators Warn Investors About The Metaverse

From the Desk of Jim Eccleston at Eccleston Law.

While the metaverse is fake, real fraudsters within the virtual world can cause actual financial harm, according to state securities regulators.

The metaverse is an online immersive environment designed by augmented reality technology which permits people to live and interact as they would in the real world via personal representations, which are called avatars. However, the virtual reality world lacks financial regulation, which may encourage fraudsters to attempt to scam participants, according to the North American Securities Administrators Association (NASAA). “Scams inside metaverse virtual worlds can be similar to real-world scams, but they are likely to include a virtual component such as crypto assets or virtual real estate”, according to NASAA.

Metaverse participants can invest in virtual real estate, non-fungible tokens and businesses operating within the virtual world. However, state regulators are encouraging investors to remember that all investments feature some inherent risk, adding that “there’s no such thing as a sure thing”. While some legitimate investment advisors are open for business in the metaverse, NASAA has recommended that investors stick with firms that are registered with federal and state regulators.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, metaverse

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

1777047237 Law
April 24, 2026
Geopolitical Tensions Prompt Wealth Advisors to Rethink Dubai Strategies

Recent geopolitical developments have forced wealth advisors to reassess client exposure to Dubai, a jurisdiction that has attracted significant ultra-high-net-worth capital over the past decade.

1776963542 Law
April 23, 2026
Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs

Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants.

1776796402 Law
April 21, 2026
DOL Proposal on Alternative Assets in 401(k)s Faces Cautious Reception

The U.S.