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Homepage > News > Business > FINRA: Metaverse to hit $3T by 2031, but poses regulatory risks The metaverse offers the securities industry a massive opportunity, but the Financial Industry Regulatory Authority (FINRA) says stakeholders must be “mindful” of the technology’s potential regulatory implications. In a recent report titled “The Metaverse and the Implications for the Securities Industry,” FINRA acknowledged the vast potential the technology presents, noting that the global metaverse revenue opportunity is estimated at $800 billion this year. A World Economic Forum (WEF) study estimated that 15% of the global economy will be in the metaverse by 2030, reaching 700 million people, while Microsoft (NASDAQ: MSFT) estimated the market will surge to $1.2 trillion by 2030. Gaming has championed the metaverse and accounts for the majority of users. However, other industries are building solutions on the technology, and the securities and financial services industries are no exception, according to FINRA. In finance, the metaverse presents an opportunity for financial services firms in data visualization, virtual trading, and offering payments for virtual goods. Immersive digital twins also foster better collaboration and decision-making, especially for multinationals with multiple offices worldwide. However, the metaverse presents unique regulatory implications, and FINRA member firms must be mindful of their regulatory obligations, the Authority says. It reminded member firms that its rules and the U.S. securities laws are technology-neutral and still apply to the metaverse as they would to any other technology. “Using any given technology does not absolve firms of their regulatory obligations,” FINRA report noted. FINRA is a non-governmental organization for the securities sector, operating independently under the SEC. It oversees exchanges, brokers and brokerage firms, boasting 3,300 firms and over 600,000 registered representatives. The Authority requested feedback on its report, especially from players in the financial services industry that have integrated…

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Filed under: News - @ November 4, 2024 10:27 am