Should We Regulate Virtual Identities in the Metaverse
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Today, we do not just live in the real world, we have lives online as well. On social media, in games, in Zoom calls…and now, in the metaverse. This is not science fiction. People are working, shopping, dating, and creating what we call is a full-blown virtual identity. And this has created a digital world around. The scenario looks right out of a Black Mirror episode. This digital world is expanding, an important question is coming to the surface:
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Should we regulate our virtual selves in the metaverse?
How much freedom is too much freedom?
And who is in charge?
We have to simplify this. We What is a virtual identity? Why should we care? And how can we keep people safe, from themselves-without inhibiting creativity?
What Is A Virtual Identity In Metaverse?
A virtual identity is like your digital twin. It is how you look and behave in online spaces, your avatar, your username, your digital actions, and sometimes maybe even the assets you possess.
In the metaverse this digital identity can look like however you want to. You can be taller, thinner, genderless, a robot, or anything that you want. You can buy virtual land, wear Gucci sneakers, and work in a virtual reality office space. But here is the catch, it will still be you. And what you do with that identity can have real-life consequences.
Why It Matters: Real Money, Real Harm
The line between the virtual and the real is becoming increasingly unknown. A report from McKinsey has estimated the metaverse market could reach $5 trillion by 2030, and that would not strictly be limited to gaming and entertainment; it would also encompass education, healthcare, fashion, and even therapy.
In this sense, virtual identity ethics becomes massively important.
Here’s why:
Crime Can Occur in Digital Spaces
In December 2022, a female user in Meta’s Horizon Worlds reported being groped by another user while using a virtual avatar. While groping would not necessarily rise to the level of assault in the physical world, it could still be considered a form of emotional harm that created the significant possibility of the user experiencing emotional harm. In addition to the complete lack of a theoretical window from experiencing emotional harm to becoming subjected to emotional harm, the example also raised an even larger metaverse privacy concerns.
Consider the implications of deepfake avatars executed to impersonate someone. If someone pretended to be you at a virtual board meeting saying things you never said, that would be a pretty big deal, right?
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Fraud and Identity Theft Are Increasing
A 2023 report from IBM established a 19% increase in cases of digital identity theft stemming from VR platforms and games.
People are spending real money buying NFTs (non-fungible tokens) and virtual real estate. If someone hacks your digital identity in the metaverse and accesses your bank account, they can potentially steal thousands of dollars worth of assets.
Kids Are Particularly Vulnerable
Roblox has around 70 million daily active users of which a very large proportion are children. There have been instances of predators using avatars to deceive or manipulate minors – a significant ethical and legal issue.
Is regulation the answer?
So yeah, some sort of oversight seems to be needed. But how much oversight is too much?
Do we let government regulate every avatar? Or do we let tech companies determine every avatar? What if those companies don’t care about your rights? That’s where things become confusing.
Let’s examine both sides of the debate.
Why Regulation Might Help
Protects people from harm
Just like laws in real life exist to stop abuse, fraud, etc., having laws in virtual space, can stop things like cyber bullying, identity theft, and avatar harassment.
Makes digital identity more secure
Regulations can ensure that your virtual identity is tied to a secure process ( biometric login, digital wallets with blockchain, etc. ) and stop impersonation.
Increase trustlock in the metaverse.
If people feel safe, they will join. Businesses will invest. Creators will build new things. According to Accenture 71% of global executives say that a secure digital identity system will be “critical” to metaverse adoption.
Risks of Regulation
Kills Innovation
One of the key features of the metaverse is the freedom to do and be anything. Going in and be someone or something else would make no sense (and lots of the magic would disappear) if identities were overly-regulated.
Increases Surveillance
What if everything you do in the metaverse is tracked? What you wear, what you say, who you meet, it’s a subject we love to talk about, but at a very basic level, it’s like being under surveillance the whole time. But that’s also a nightmare for metaverse privacy concerns.
Could Become an Extension of Big Tech
If we aren’t careful with future regulation, governments could be totally sidelined and rule-making will reside completely with the organizations building the platforms (Meta, Apple, etc.). Which are unlikely to consider ethics.
So What Can Smart Regulation Look Like?
Regulation doesn’t mean full control. It can be smart, be flexible, and user-centric.
What Could Work?
Verified + Anonymous Identity Programs
Leave it open to individuals to make the call. You can remain anonymous — but also verified in the background (think Twitter “blue ticks”). This way, a troll isn’t able to troll or harm other individuals since they aren’t able to create 100 fake accounts.
Digital ID Framework Across Platforms
Similar to how your passport can be accepted in different countries, a verified digital identity in the metaverse would be able to function across everything, gaming, meetings, or social. Consequently, this can reduce the chances of fraud and build data self-satisfaction.
Clear Expectations about AI-Generated Avatars AI-generated avatars can talk and move like you, but that opens the door to impersonation. We need laws that clearly identify what’s okay and what’s not.
Real-Life Actions
Some governments and companies are already taking action. Here are some actionable insights:
- South Korea In 2022, the South Korean government created a national Metaverse Ethics Committee to explore safety and rights in digital spaces.
- European Union The EU is attempting to create a Digital Identity Framework that could apply to metaverse platforms, which would allow citizens to log in securely across services.
- Microsoft is trying to build an “Entra ID” system that focuses on cross-platform security, particularly in work environments within virtual spaces.
What You Can Do as a User
- Pick platforms that value privacy: Even if you are not building the metaverse, your choices are important. Choose platforms that incorporate privacy as a priority Check to see how your data is retained. Are they transparent about it? Can you choose the details you want to share?
- Be mindful of your avatar: Be aware of avatar behaviour Just because it is virtual does not mean that it didn’t happen. Respect the other people in these spaces, and report abuse when you see it.
- Ask for accountability: Request accountability No matter if it is Meta, Roblox, etc, you email them, post online, ask what they’re doing for Virtual Identity Ethics.
Final Thoughts
The future of the metaverse is not in the future but instead it is today. And it brings with it a huge, complex, and exciting new world of identity. But with great freedom comes great risk.
Virtual identity goes beyond a cool avatar. It is everything of yours, your voice, your presence, and in many cases, your money. And if we are not careful, it can be misappropriated, stolen, or otherwise subverted.
So yes regulation matters but it needs to be intelligent regulation. It needs to protect users but not stifle creativity, stop harm but not turn the metaverse into a surveillance state.
As users we must advocate for platforms that pay attention to Virtual Identity Ethics, acknowledge Metaverse Privacy Concerns, and create safe and flexible systems for digital identity in the metaverse.
Because at the end of the day, the metaverse is what we make it.
Let’s make sure it is safe, free, and fair– for everyone.
