This article is written by Olalekan Fathia Mojisola, University of Ibadan, Faculty Of Law,2025 during my internship at LeDroit India.
ABSTRACT
The rapid evolution of technology has resulted in the emergence of metaverse (an immersive digital ecosystem built upon virtual reality, augmented reality, and decentralized infrastructures). While the Metaverse presents unprecedented opportunities for social interaction, commerce, and innovation, it simultaneously introduces complex legal challenges, particularly concerning jurisdiction and the regulation of virtual reality (VR) crimes. This article examines the conceptual development, historical evolution, and defining features of the Metaverse, highlighting its transformative impact on digital rights and virtual economies. It further explores the nature of VR crimes, emphasizing how unlawful acts committed in virtual spaces can produce tangible legal, psychological, and financial consequences in the real world.
Focusing on the Indian legal framework, the study analyzes jurisdictional dilemmas arising from the borderless, decentralized, and anonymous nature of the Metaverse. Issues such as extraterritorial enforcement under the Information Technology Act, 2000, anonymity through avatars, lack of corporeal harm under traditional criminal law, and gaps in international cooperation are critically evaluated. This article explains how existing territorial and sovereignty-based legal doctrines are inadequate to address crimes in immersive virtual environments. It concludes by underscoring the urgent need for adaptive legal frameworks, harmonized jurisdictional principles, and international collaboration to ensure accountability, user protection, and legal certainty in the evolving Metaverse landscape.
Keyword: metaverse, virtual reality crimes,digital system, IT Act 2000
Article Outline
- Introduction
- Definition Of Metaverse
- History Of Metaverse
- Key Features of Metaverse
- Jurisdictional challenges in virtual reality crimes
- References
- Conclusion
INTRODUCTION
One of the greatest evolvement in the twenty first is the ‘internet.’ It has reshaped how the world moves ahead. It has also modifies how interactions and communications take place in personal and business spaces. The internet tremendously impacts trade, education, geopolitics, and public and private services.
Over time, humans have evolved to be civilized and accepted to adhere to societal or sovereign laws. Along similar lines, technology evolution also must conform to the law.
The internet builders have purposely kept privacy as the internet’s key component. This is why the internet is still unable to be regulated entirely by any country. Internet technology has now merged with virtual reality resulting in a new technological service called “Metaverse.” The jurisdiction of these technologies and their adherence to an international treaty is the topic of this journal.
It is complex to define or classify the “Metaverse.” Though the name “Metaverse” sounds like some mathematical theorem or wavelength concept, it is the next level of cyber technology that is built upon virtual reality (VR) and augmented reality (AR) or extended reality (ER). Metaverse is a ‘service’ like any other internet service such as Facebook or WhatsApp. But the gamut of technological involvement and virtual reality Metaverse is expected to generate spinning stories in and around the globe.
Owing to the existing models, the Metaverse offers people two kinds of choices:
Foremost, it helps people travel to places through virtual reality, see and purchase products from any store, and it can also help people negotiate, conclude, and sign the business. All of these can happen virtually without the individual needing to step out of his home. The individual need not travel to the shop or any office. He can simply make his decisions from his home.
Secondly, the products bought become the individual’s virtual assets. For example, an individual or organization can create a virtual world and sell any particular house or portion of land or a mall for sale. The buyer can purchase the same virtually through virtual currency, and the virtual piece of land sold or bought becomes a digital asset. This virtual land must get similar protection like physical land gets protection from any third parties and trespassers in the virtual space. Thus Metaverse brings a host of virtual rights to the online space.
DEFINITION OF METAVERSE
The term “metaverse” originated in science fiction and has evolved in various fields. There is no certain description of the term and the concept, as different actors try to define it according to their oown ideas. Therefore, the meaning of metaverse changes and so does the concept that surrounds it. Different meanings of the term “Metaverse” in different areas are discussed as follow:
SCIENCE FICTION: the metaverse is often depicted as a fully immersive virtual reality space. Humans are just avatars interacting with each other in real time. A world is often depicted where life takes place virtually.
TECHNOLOGY INDUSTRIES: the term is used to describe a network of virtual 3D worlds. Companies like Facebook (Meta) envision a future version of the internet where 3D worlds are used for more interaction, more experiences and also the extension of our existing world through virtual or augmented realities.
BLOCKCHAIN/CRYPTO: the metaverse often refers to decentralized virtual spaces or universes built and owned by their users, with economic systems supported by blockchain technology. In this context, it can include anything from virtual real estate to digital goods and services, however, the trend is flattening out again as it does not make sense to limit digital goods as daruch one of the great benefits of Digital Worlds.
GAMING INDUSTRY: In the gaming industry, the metaverse refers to a shared space where multiple players can exchange or interact in a virtual persistent space. It thus encompasses a universe of digital worlds that are all connected, as in games like Fortnite or Roblox.
The Futurist Perspective: Some futurists and thinkers speculate about the Metaverse as a new stage of the Internet that could have profound implications for society, business and culture. There would be an alternative economy, paralel societies and norms, as well as effects on birth rates, taxes, legal systems and cultures.
The evolution of the metaverse raises the urgent need for governments, businesses and legal experts to work together to develop legal frameworks and policies that specifically address the challenges of security, privacy and liability within these virtual environments. Efforts to combat crimes in the metaverse must be multifaceted and include the implementation of stronger security technologies, user education on safe online practices, and international collaboration to address cross-border jurisdiction.
History of Metaverse
The concept of a metaverse first appeared in science fiction in the 1950s, with early works such as William Gibson’s novel Neuromancer and the 1982 film Tron. These stories described an immersive virtual world for humans to explore. Extending this definition to “virtual reality”, the French poet Antonin Artaud used the term as early as 1938 in his collection of essays “The Theatre and its Double”. The first real simulation was created in 1962 with “Sensorama”, a machine that simulated the experience of riding a motorbike through New York City via a 3D film with a vibrating chair and even fans and smells.
After these early attempts at virtual reality, author Neal Stephenson coined the term “Metaverse” in his bestselling 1992 novel Snow Crash, imagining a virtual multiverse in which people interact and experience shared virtual worlds in a dystopian future. In 1997, famed video game developer Richard Garriott used the term to describe an online role-playing game he was developing called Ultima Online, which was released a year later and is widely considered to be the first MMO (massively multiplayer online) game.
In 2003, the 3D online virtual world called “Second Life” was released, allowing people to create virtual worlds, interact with them and exchange virtual goods. Only 3 years later, Roblox was released, creating a hype for users who could easily create virtual worlds (from “blox” blocks) or use other users’ virtual worlds to play in, which became a quick success.
Over time, more and more technology companies began to explore the concept of virtual reality and create versions of this new digital world. In 2012, Oculus, the first low-cost 3D headset for the masses, was launched and just two years later, in 2014, it was bought by Facebook. With faster smartphones, internet connections and devices, the emergence of platforms and games such as Pokemon Go, which combines AR and real-world gaming with the virtual game, or Fortnite, which now hosts over 250 million players in its virtual MMO game world, began.
The next phase of metaverse hype began in 2021, when Facebook renamed itself ‘Meta’ and Microsoft released its ‘Mesh’ platform. Both Facebook’s (Meta) Worlds and Microsoft’s Mesh are trying to get businesses to use VR and virtual worlds for meetings, workshops and more.
The trend has continued, with new hardware and software being released every year, making VR headsets lighter, with better resolution, faster hardware and, most importantly, cheaper.
KEY FEATURES OF METAVERSE
1. Interoperability
One of the most defining features of the metaverse is interoperability. This allows different virtual spaces to interact and connect seamlessly. Users can move their avatars, assets, and experiences across multiple platforms without restriction in the metaverse. For example, a digital asset purchased in one virtual world can be used in another, thanks to standardized protocols and decentralized infrastructure. This fluidity fosters a more unified and extensive digital experience.
2. Persistence
Persistence refers to the continuous existence of the virtual world, even when individual users are not logged in unlike traditional online games where the world resets or changes when users log out, the metaverse maintains a persistent state. This means that activities, creations, and changes within the metaverse endure over time, providing a consistent and reliable user environment.
3. User-Generated Content
A hallmark of the metaverse is its reliance on user-generated content (UGC). This feature empowers users to create, modify, and share content within the virtual space. From virtual real estate to customized avatars and interactive experiences, UGC forms the backbone of the metaverse’s dynamic ecosystem. Platforms like Roblox and Minecraft exemplify how UGC drives engagement and innovation, enabling users to shape their virtual experiences.
4. Real-Time Interaction
The metaverse thrives on real-time interaction, allowing users to communicate and collaborate instantaneously. This feature is crucial for virtual spaces’ socialization, gaming, education, and business activities. Real-time interaction is facilitated by advanced networking technologies and robust servers, ensuring that users can engage with one another without noticeable delays or lag.
5. Virtual Economies
Another defining feature of the metaverse is the presence of virtual economies. These digital marketplaces operate with their currencies and economic systems, enabling users to buy, sell, and trade virtual goods and services. Cryptocurrencies and block chain technology are significant in powering these economies, providing transparency, security, and decentralization. Virtual economies offer real-world financial opportunities, with users earning income through various activities within the metaverse.
6. Immersive Experiences
Immersive experiences are a cornerstone of the metaverse, made possible by VR and AR technologies. These experiences create a sense of presence and engagement that traditional media cannot match. Users can explore detailed virtual environments, participate in interactive narratives, and experience events in ways that feel tangible and real. The immersive nature of the metaverse has profound implications for entertainment, education, and social interaction.
7. Decentralization
Decentralization is a critical feature that distinguishes the metaverse from conventional online platforms. By leveraging block chain technology, the metaverse can operate on decentralized networks, reducing the control of single entities over the entire ecosystem. This decentralization promotes fairness, transparency, and user empowerment, as it eliminates the need for intermediaries and allows users to have greater control over their data and digital assets.
JURISDICTIONAL CHALLENGES IN VIRTUAL REALITY CRIMES
Virtual reality (VR) crimes are unlawful or harmful acts committed within virtual reality environments or through the use of VR technology, where users interact using avatars in immersive digital spaces (such as metaverse platforms, VR games, or social VR worlds).
Although the acts occur in a virtual space, their legal, psychological, financial, or social consequences are real, which is why many legal systems now treat them as serious issues.
In 2026, jurisdictional challenges in virtual reality (VR) and metaverse-related crimes in India stem from the borderless, decentralized, and immersive nature of these digital spaces, which often conflict with traditional territorial legal systems.
The primary jurisdictional challenges include:
- Borderless Transnational Offenses: VR crimes often involve perpetrators in one country, victims in another, and servers (hosting the virtual world) in a third. While Section 75 of the Information Technology Act, 2000 (IT Act) claims extraterritorial jurisdiction if an Indian computer resource is affected, enforcing this against foreign nationals is practically difficult without international treaties.
- Decentralized Governance: Many VR environments operate on blockchain technology, meaning no single entity exercises absolute control. This “legislative vacuum” makes it difficult for Indian authorities to hold a specific platform accountable or to determine the “legitimate authority” for a given virtual space.
- Anonymity and Avatars: Perpetrators use digital personas (avatars) that are often disconnected from their physical identities. This makes it arduous for Indian law enforcement to identify and locate criminals for prosecution.
- Lack of Corporeal Elements: Traditional Indian criminal codes, such as the Bharatiya Nyaya Sanhita (BNS), frequently require physical harm or “bodily injury”. Immersive crimes like “virtual sexual assault” or harassment through haptic feedback do not involve physical touch, leading to legal gaps in how these acts are categorized and tried.
- International Cooperation Gaps: India is not a signatory to the Budapest Convention on Cybercrime, which limits its ability to engage in standardized cross-border investigations, data sharing, and extradition for virtual crimes.
- Conflicting Tests for Jurisdiction: Courts currently rely on various tests—such as the “Effects Doctrine” (where the harm is felt) or the “Sliding Scale Test” (level of interactivity)—to determine if they can hear a case. The lack of a single, uniform standard for VR leads to inconsistent judicial outcomes.
In conclusion,
the Metaverse represents a significant shift in the way human interaction, commerce, and identity are constructed in the digital age. As virtual environments increasingly mirror real-world activities, the distinction between physical and digital spaces continues to blur, giving rise to novel forms of criminal conduct. Although these acts occur in virtual settings, their consequences are undeniably real, thereby demanding serious legal recognition and response.
In the Indian context, while statutory provisions such as the Information Technology Act, 2000 offer limited extraterritorial reach, practical enforcement remains constrained by anonymity, decentralized governance structures, and insufficient international cooperation mechanisms. The absence of India’s participation in global cybercrime frameworks further exacerbates investigative and prosecutorial challenges. Additionally, the lack of clear legal recognition for immersive, non-physical harms exposes significant gaps within existing criminal law frameworks.
To effectively regulate the Metaverse, there is an urgent need for legal reform that embraces technology neutral principles, recognizes virtual rights and harms, and adopts flexible jurisdictional tests suited to immersive digital environments. International cooperation, harmonized standards, and multilateral treaties will be indispensable in addressing cross-border VR crimes. Even though the metaverse is new for individuals and businesses, it is a technology with immense potential and scope to offer the best outcome for everyone.
While most of the major players in the market are adopting the metaverse or are entering its world, there is still a share of people who are yet to explore the advancements and achievements of the same. Looking at the future, it is evident that if the technology continues to be adapted as per the requirements of businesses and individuals, working in the metaverse in the future would be the most immersive experience ever.
