The European Commission's policy paper on virtual worlds, announced by Commission President Ursula von der Leyen in September, has been delayed and will not have legislative power. However, concerns remain about how virtual worlds will address policy issues such as property rights, technological standards, and privacy.

The metaverse strategy may lead to stronger action in the future, similar to the EU's 2018 strategy on Artificial Intelligence, which resulted in an AI bill in 2021. The commission has stressed the importance of incorporating "European values" into the metaverse, including topics such as discrimination, safety, and data controls, while also expressing concerns about the dominance of major players like Meta and Apple.

The metaverse presents legal challenges, particularly in regards to personal property rights that are undermined by online terms and conditions. Some argue that the metaverse requires its own set of regulations, while others believe that existing online laws should apply. However, the use of potentially invasive technology in virtual worlds poses risks to human rights and could result in pervasive surveillance. The metaverse is expected to rely on blockchain and cryptocurrencies, which means that regulation of the metaverse could also impact the crypto industry.