The Juridical and Legal Legitimacy of Digital Assets in the Metaverse

Abstract

The metaverse is a novel and unprecedented entity that has emerged with technological advancements and has garnered attention in the fields of communication sciences, computing, and electronics. However, the unique characteristics of this space, particularly the possibility of conducting transactions and exchanges within the metaverse—entirely within a hyper-reality and virtual reality framework—necessitate a juridical and legal study of this phenomenon from this perspective. The fundamental question examined in this article is whether digital assets in the metaverse have legitimacy under Iranian jurisprudence and law. This article adopts a descriptive-analytical approach and examines the posed question using a library research method. The findings indicate that transactions conducted within the metaverse satisfy all essential conditions for the validity of transactions under civil law. However, in Imamiyyah jurisprudence, most jurists consider transactions based on tokens and cryptocurrencies as void or impermissible. Property is defined as something that can be exchanged and holds economic value. Since this concept has lost its traditional meaning due to political and economic transformations and is no longer confined to physical objects in contemporary commerce, it can be argued that from a legal perspective, the recognition of assets within this space is accepted. Although physical delivery and possession of assets in the metaverse are not possible, the fact that the transacted item exits the seller's ownership, enters the buyer’s asset portfolio, and the buyer gains access to it constitutes a valid form of delivery.