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China is reportedly looking to enter the metaverse space while implementing its strict regulations. The country is exploring the implementation of social credit systems for metaverse users, similar to the controversial laws of China’s Communist Party. Discussions have begun between China’s tech community and global tech bodies to explore this concept.

China Mobile has supposedly reached out to the International Telecommunication Union (ITU), a telecom agency under the United Nations (UN) that sets global rules for the tech sector. The first proposal from China suggests the creation of a digital ID system for metaverse users. This digital ID system would include personal details such as social media credentials and employment information.

The proposed digital ID system is comparable to China’s social credit system, which scores Chinese nationals based on their behavior. In the metaverse, law enforcement authorities in China would use this system to identify cyber criminals. Those who commit fraud, identity theft, or harassment in the virtual ecosystem may face real-life consequences if this digital identification proposal is implemented.

The metaverse allows people to interact as digital avatars for various activities such as social gatherings, work commitments, gaming, and file exchange. If China Mobile’s proposal is accepted by the ITU, it could potentially enable the Chinese government to monitor metaverse users.

According to experts, China’s interest in the metaverse space raises concerns about user privacy and surveillance. The ITU’s metaverse-focused group is scheduled to meet in October, where China’s proposal may be put to a vote. So far, neither China Mobile nor the ITU has responded to the report.

It is worth noting that this is not the first time a Chinese company has shown interest in the metaverse sector. Tencent, a major Chinese tech company, established an ‘extended reality’ (XR) unit in June 2022, emphasizing the concept of virtual worlds.

With the global metaverse sector projected to generate revenue of billion by 2023 and potentially reach 6 billion by 2030, China’s exploration of social credit systems in the metaverse highlights its ambition to tap into this growing market.

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