The North American Securities Administrators Association (NASAA), an organization of state and provincial securities regulators in the United States, Canada, and Mexico, recently issued a warning to investors about the potential risks of investing in the metaverse. The potential for fraudulent securities activity exists “in real life” (in real life) and in virtual worlds, whether by investing directly in a metaverse-focused company or making an investment while partaking in the metaverse as an avatar. (we may need to work on that a bit).

NASAA notes that the difference between investing IRL and investing in the metaverse is becoming increasingly blurred, but “real assets can be put at risk and transferred” in either case. Importantly, the notice emphasizes that…