According to CryptoPotato, a report by the NYU Stem Center for Business and Human Rights (CBHR) has warned that the development of the Metaverse could lead to an unprecedented erosion of privacy and a rapid surge in physical aggression. The CBHR report recommends that both the Web3 space and governments take solid steps to prevent a looming security and privacy crisis.

The Metaverse, also known as Extended Reality or Spatial Computing, is a digital version of the universe where users can work, learn, and socialize in a 3D-rendered environment. The CBHR report highlights the potential threat to users' privacy and safety due to the immersive nature of the Metaverse. The report states that the Metaverse will use bodily data and spatial surroundings, which can reveal sensitive information about individuals, including their physical and mental states. CBHR believes that attackers and advertisers could exploit this information for commercial or political gain, eroding privacy. The report also underlines the potential for harmful behavior in virtual environments, including child abuse and sexual harassment.

With major tech companies such as Meta, Apple, Microsoft, Nvidia, and Sony investing heavily in the Metaverse, CBHR emphasizes the need for proactive measures to protect human rights in the 3D immersive web. The report recommends several steps for the industry to take to avert a looming privacy and security crisis. These include erasing user body-based data not needed for device functionality and offering more options for users to control their exposure to privacy and safety risks. The report also advises governments to develop comprehensive federal privacy legislation and strengthen their authority to oversee digital industries, including the Metaverse. Additionally, CBHR suggests that governments should empower federal agencies to research and investigate the health consequences and environmental impacts of immersive technologies. CBHR believes that both the industry and policymakers must take necessary steps to protect human rights.