Earlier this year, the People’s Bank of China (PBOC) warned about nonfungible tokens (NFTs) and metaverse in November 2021. Despite the stern warnings, over one thousand Chinese firms have already submitted thousands of metaverse-related trademark applications.
The central bank proposed to monitor the nascent sectors but companies like Huawei and Tencent are currently pursuing metaverse-related trademarks. In a summit held back in November, the PBOC’s AML and Analysis Center Director, Gou Wenjun, insisted on the dangers that come with digital assets.
Based on a statement by Gou, since virtual assets do not have any physical basis, they can be used for a variety of illegal financial activities. Gou highlighted the activities like “illegal fundraising, pyramid schemes, and fraud.”
Nonetheless, while ignoring the People’s Bank of China’s warnings, Chinese firms moved to register metaverse-related trademarks like “metaverse satellite” and “metaverse exhibition.” Based on a publication by the South China Morning Post (SCMP), at least 1,360 Chinese firms have already submitted 8,534 trademark applications that are related to the metaverse by December 19.
Tencent said to sharpen focus on metaverse-like developments with advanced new gaming studio https://t.co/0CpQbrzxd8
— South China Morning Post (@SCMPNews) October 20, 2021
Most of these firms that applied for trademarks are tech companies. It features major firms like Tencent, Hisense, and Huawei. The latter applied to register ‘Meta OS’ while Hisense applied with multiple trademarks in different areas like advertising, social services, and science.
Gaming and tech behemoth Tencent joined the rush after registering nearly a hundred metaverse-related trademark applications like “QQ Music Metaverse,” “QQ Metaverse”, and “Kings Metaverse.” Apart from the PBOC’s warning, People’s Daily, the official newspaper of the Chinese Communist Party, also published a stern warning about the metaverse on December 9.
This media outlet warned people who engage in digital asset purchases, including property sales within the metaverse come with high risks of volatility. These trademark applications never came as a surprise to most since the demand for nonfungible tokens (NFTs) is on the surge.
According to Crypto Slam, an NFT sales tracker, NFTs sales in the last seven days surpassed $580 million. Other reports say that NFT sales will exceed $17.7 billion in 2021.