IGF 2022 WS #364 Misty Metaverse: Blurring Letter of the Law

Some people consider the metaverse to be the first step towards the digital state as well as the corresponding “citizenship” and “laws” and, as a product of Web 3.0-5.0, the metaverse will, in fact, lessen the role of the state. The reason for this is basically that decentralized systems operate in accordance with their internal logic, which is actually the only and final “jurisdiction” for transactions conducted through the system. That means that IT giants and corporations are establishing rules inside the metaverses and governments have very limited power inside virtual worlds due to the absolute absence of some kind of regulation of metaverses. Which leads us to the logical question: in which jurisdiction do these metaverses operate? And how to ensure that rights of the users of DLT-based solutions are protected? Therefore, it is needed to create a unified basic regulatory and legal framework for metaverses to protect users that will apply to every metaverse wherever it may be located. The main argument for this is that the rules of metaverses created by the private sector may initially not comply with local legal systems in those countries where users are / will be located, and may begin to contradict them. The absence of a physical real world entity responsible in such a system for the virtual reality environment, makes it difficult or impossible to enforce the law. The widespread use of decentralized applications in any area of ​​society within a country actually takes the area out of state legislation. The financial aspect of metaverse is no less important. NFTs and other DLT-based solutions are now becoming the source of income for many people, especially if we talk about such things as ‘play-to-earn’ and other similar schemes. The example of the Philippines shows that this could become the substitute for an actual work but also can easily be turned into fraudulent activity. What kind of problems does this model of income create and what kind of risks does it possess? Cryptocurrencies used to pay transactions in metaverses are also still not regulated by most of the governments in the world. So, this revenue remains in the ‘dark side of the web’, it is not taxed, nor is it considered sometimes to be real money and sometimes it turns out to be a speculation. But will earning money at the metaverse help to solve inequalities of income? Is it an option for least developed countries and Global South to reduce poverty or do the IT giants use the naivety of users to make millions in profits? What kind of regulation for cryptocurrencies and labour market in the metaverses should be established, so that users would be protected? The other question that pops out is how to combat cyber threats in ‘metaverse’. It will likely exacerbate the problem of identity theft, avatars, schemes, frauds and blackmail. But how to avoid this if metaverses are based on DLT and controlled by IT corporations with their own rules and terms and conditions? How to protect the privacy and data of ordinary users? As for now metaverse looks like a paradise for cybercriminals and the ideal breeding ground for the rise of almighty tech and financial companies. If they become the ones in charge, making laws that benefit only themselves, there will be no one to limit their activity. Metaverses present the opportunity for disabled people as VR-technology can help, for example, with medical treatment or create a space where everyone can be equal. But the question arises as how to make this virtual space inclusive for all people as VR-tools are not always designed for people with disabilities? Metaverses could also be useful for education purposes and create digital copies of the world's top universities with free access for all the people to attend lectures. What are the challenges and how to face them together, with the help of cross-border cooperation?