on the crypto
Requests from Chinese tech companies for metaverse-related brands have been increasing in recent months. However, approvals for these applications may be less forthcoming.
Chinese government warnings and China's ban on cryptocurrencies hasn't held back Chinese tech companies. According to recent reports, more than 1.300 Chinese companies have registered trademarks related to the metaverse. This is a marked increase when you consider the fact that just over 100 companies had registered trademarks a few months ago.
China and Metaverse
There has been a lot of news about the metaverse and warnings from the Chinese regulator, the People's Bank of China (PBoC). The latest data, however, shows that warnings are falling on deaf ears.
More significantly, the PBoC is said to be trying to crack down on NFTs and the metaverse using AML tools. Following the ban on cryptocurrencies across the country, crackdown is a natural progression for the PBoC. The efforts of the PBoC to reign in this space are likely when we consider the latest numbers.
With companies filing trademarks reaching 8.534 by last Sunday, the big question will be how many, if any, get approved.
The PBoC's AML unit reported that the metaverse poses a threat and stated that constant high-level vigilance must be maintained. Elaborating on this, the AML unit also sees virtual goods as a pathway for illegal activities, facilitated by the isolated nature of NFT and metaverse-based objects.
Big Chinese tech companies take a stand
Despite all of this, a number of major Chinese tech companies are among the more than 1.300 that have filed trademarks.
Huawei Technologies Co is certainly a major company. It hasn't been long since Huawei was under the watchful eye of the Trump administration. The second largest gaming company in the country, NetEase, reported having filed 26 brands related to the metaverse. There is also the game company Tencent and the Hisense TV brand.
The best scenario
For companies like Huawei and Tencent, among others, the baseline scenario is approval. Approval will likely come with pitfalls for Chinese tech companies. Censorship is unlikely to wane as NFTs and the metaverse evolve. If anything, it will likely get tougher. In the worst case, the government could go beyond simply denying trademark applications.
