China is known for having a negative stance towards the crypto market. After banning crypto mining and trading, companies in the country no longer engage in digital assets except for the digital yuan.
Now, companies in mainland China are exploring other blockchain options, including metaverse and non-fungible tokens (NFTs). This comes despite a previous warning by the People’s Bank of China (PBoC) regarding the metaverse and NFTs.
Chinese companies file for metaverse trademarks
A publication from South China Morning Post noted that 1360 companies based in China submitted over 8000 metaverse related trademark applications. This comes despite Gou’s remarks that virtual spaces can be used to conduct “illegal fundraising, pyramid schemes and fraud.”
Tech giants are taking the lead in filing for metaverse trademarks. Leading Chinese firms such as Hisense and Huawei are among those that have lodged for these trademarks. Huawei has applied for a “Meta OS” trademark, while Hisense’s trademark applications revolved around science, advertising, social services and more.
Tencent, a gaming tech giant, has made nearly 100 trademark applications, including Kings Metaverse, QQ Metaverse and QQ Music Metaverse.
Ignore stern warnings
Over a thousand companies in China have lodged applications for metaverse-related trademarks. This is contradictory to what the PBoC advocated for in November. At the time, Gou Wenjun, the bank’s AML and Analysis Center Director, warned about the imminent dangers posed by crypto assets.
Gou stated that any form of virtual asset could be used to finance illegal activities. However, leading Chinese companies are not heeding this warning. The companies have now rushed to register trademarks related to the metaverse, including metaverse satellite and metaverse exhibition.
PBOC is not the only body warning people against virtual assets. People’s Daily, the official newspaper for the Chinese Communist Party, issued a warning about the metaverse on December 9. The publication noted that purchasing virtual properties within the metaverse came with a high level of risk.
The trademark applications come when demand for metaverse-related products and non-fungible tokens (NFTs) is on the rise. While NFT sales have slowed down compared to previous months, demand is still notably high. Crypto Slam, an NFT sales tracker, noted that sales in the past week totalled $580.7 million.
Further data shows that before the year closes, the annual NFT sales will gave topped $17.7 billion. The growing popularity of the metaverse has been attributed to this influx in demand for NFTs.
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