Even though the People’s Bank of China’s (PBOC) warning on metaverse and nonfungible tokens (NFTs) in November, more than a thousand Chinese companies have submitted thousands of metaverse-related trademark applications.

In a summit back in November, Gou Wenjun, the PBOC’s AML and Analysis Center Director, Digital assets can be dangerous. Gou stated that virtual assets can be misused for financial crimes because they lack a physical foundation. Gou cited activities such as “illegal fundraising, pyramid schemes and fraud.”