In 2017 the government of Asgardia, a “space nation” that claims sovereignty based on its ownership of a small satellite, held a citizen recruiting drive in Hong Kong. At the time, Prime Minister Lena De Winne explained to Breakingviews that its leaders were caught off-guard by the amount of interest out of China and decided to host an event there. The meeting was packed, and De Winne engaged enthusiastically with the audience on everything from virtual currencies to her policy on alien civilisations (she’s pro-engagement). Currently, Asgardia’s supreme justice is a lawyer from China.
Moreover, metaverses feature cryptocurrencies, which Beijing has banned, alongside other virtual asset classes like non-fungible tokens that are prone to bubbles and regulatory crackdowns. Unlike mobile games or online videos, such platforms are inherently more difficult to monitor or censor too.
Companies exporting metaverse-related products and services may do well enough if overseas markets develop. But given the regulatory constraints, investors should ground their hopes for Chinese virtual fantasy worlds in political reality.- Alibaba has registered a company focusing on the metaverse, the South China Morning Post reported on Dec. 15.