Facebook’s planned banking services inside its virtual reality Metaverse project face strong warnings from several countries. Multiple government regulators suspect Facebook operates these services without required banking licenses. The project called ‘Metaverse Bank’ aims to let users manage money and make payments using digital avatars. Officials in Germany, France, South Korea, and others expressed serious concern. They believe Facebook needs proper authorization just like any real-world bank.
(Facebook’S ‘Metaverse Bank’ Warned By Many Countries: Suspected Of Operating Without A License)
Regulators state offering banking functions without a license breaks financial laws. They worry this poses big risks for users. People might lose money if something goes wrong. The system could also be vulnerable to hackers. There are fears about poor security protecting user funds. Another worry is the lack of clear rules for handling complaints or disputes inside the Metaverse.
Facebook announced its Metaverse banking plans recently. The company wants to build a full digital economy. This includes virtual stores, jobs, and financial services. Regulators argue Facebook cannot skip standard banking rules. They insist the virtual world needs the same consumer protections as physical banks. Germany’s financial watchdog already sent Facebook a formal notice. France warned about possible legal action. South Korea highlighted potential fraud dangers.
(Facebook’S ‘Metaverse Bank’ Warned By Many Countries: Suspected Of Operating Without A License)
The company has not publicly responded to these specific license accusations. Facebook previously stated it follows all applicable laws. Experts note this situation shows the challenge of regulating new digital spaces. Governments are trying to catch up with fast-moving tech developments. They want rules in place before these virtual banks launch. Protecting people’s money remains the top priority for officials. The warnings urge Facebook to seek licenses immediately or halt its banking plans.