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Consumer protection in blockchain-based metaverses: a comparative study of cross-border legal gaps and platform governance

Authors

LÓPEZ RODRÍGUEZ, ANA MERCEDES

External publication

No

Means

Front. Blockchain

Scope

Article

Nature

Científica

JCR Quartile

SJR Quartile

Area

International

Publication date

20/10/2025

ISI

10167

Abstract

Blockchain-based metaverse platforms such as Decentraland and The Sandbox offer a vision of decentralized digital ownership and seamless cross-border interaction, yet expose users to significant legal and security risks due to fragmented consumer protection frameworks. This article undertakes a comparative legal analysis of six major jurisdictions-the European Union, United States, China, Singapore, Brazil, and South Korea-focusing on jurisdictional issues, data privacy, liability, and dispute resolution within decentralized virtual worlds. The findings reveal a fragmented regulatory landscape, with ongoing gaps that contribute to declining user trust and engagement. These unresolved legal challenges, alongside persistent security vulnerabilities, undermine the long-term viability of metaverse ecosystems. To address these problems, the paper proposes a hybrid governance framework that integrates blockchain-native tools, such as smart contract arbitration, with enforceable legal standards. This approach aims to align innovation with accountability and foster a more trustworthy, sustainable, and user-centered metaverse.

Keywords

blockchain-based metaverse; consumer protection; jurisdiction and conflict of laws; decentralized governance (DAOs); smart contracts; dispute resolution (ADR/ODR/BDR); comparative legal analysis

Universidad Loyola members