ZK Law Firm Partners, Penny Kontogeorgou and Mina Zoulovits, and Zoe Syrmakezi, Associate, are featured in this month’s issue of Synigoros magazine published by Nomiki Vivliothiki through their article titled “Metaverse: key legal Challenges in the new virtual universe of web3“.
You can find a few extracts of the publication below:
Metaverse is the next big thing in technology and our lives. It is a world like the Internet, but a virtual, three-dimensional, immersive world, where participants interact through their avatars for entertainment, transactions, remote work. And while everything is exciting for consumers, businesses and investors, legal challenges arise regarding the security, transaction safety and the protection of rights in the Metaverse; hence, the application of existing laws and regulations. Some of the most interesting aspects on the application of legal principles in the new virtual universe include:
- Personal Data and Privacy; (GDPR) applies to Metaverse. In addition, the Data Governance Act regarding data sharing and consent control mechanisms through data intermediation services and the proposed Regulation on Artificial Intelligence, could form the basis for compliance by stakeholders in the Metaverse, although none of the above is designed to address the challenges in the Metaverse.
- Cybersecurity; Various forms of cyberattacks are already and will continue to target the digital assets of victims (e.g. through illegal access to accounts held on NFTs platforms and exploitation of related property rights), but also the devices that allow access to the metaverse platform, such as VR headsets.
- NFTs; NFTs are a new form of asset, widely used in metaverse platforms. The fact that interest in them is growing rapidly, while NFTs are not yet under the umbrella of specific legislation and supervision of a competent authority, combined with the fact that transactions are carried out anonymously and without the guaranteed intermediation of a licensed entity, may consequently put consumers and investors at risk of losing money, while increasing the risk of financial instability, market manipulation and financial crime.
- Competition Law; operating in this new channel raises questions as to the creation and definition of new markets in which players will be able to obtain significant power, given the limited number of companies with the investment potential for a front row in the Metaverse.
The Metaverse is a coin with two sides: Opportunities and risks that are not yet clear. The current legal framework may in some cases be applicable, in others its application may not be entirely appropriate or even be questionable and the courts may have to take on the role of the regulator. To maintain the interoperable and decentralised nature of the Metaverse, and to make it a safe and trusted environment for all, in which democratic values are reflected, a minimum set of rules designed by all stakeholders (developers, businesses, academics, consultants, legislators, government, etc.) would probably be a good start towrards ensuring the rights of users on the one hand and to develop innovation on the other.
Download the full version of our article “Metaverse: key legal Challenges in the new virtual universe of web3” here (pdf) (in Greek), where we share our views on some of the key legal challenges introduced with the emergence of metaverse platforms.
The article is featured in the latest issue (151/2022) of Synigoros magazine. Many thanks to Nomiki Vivliothiki for hosting us.
