Consumer Protection in Blockchain-Based Metaverses: A Comparative Study of Cross-Border Legal Gaps and Platform Governance

Ana Mercedes Lopez Rodriguez^1,2*

• ¹Universidad Loyola Andalucía. Departamento de Derecho, Seville, Spain
• ²Universidad Loyola Andalucia - Campus de Sevilla, Seville, Spain

Blockchain-based metaverse platforms such as Decentraland and The Sandbox offer a vision of decentralized digital ownership and seamless cross-border interaction. However, these environments also expose users to significant legal and security risks, particularly due to outdated or fragmented consumer protection frameworks. This article examines how six major jurisdictions—the European Union, United States, China, Singapore, Brazil, and South Korea—approach key legal issues such as jurisdiction, data privacy, liability, and dispute resolution within decentralized virtual worlds. Drawing on legal analysis and existing literature, the article suggests that ongoing regulatory gaps may be one of several factors contributing to declining user engagement. As unresolved conflicts and persistent security vulnerabilities continue to erode trust, users may become increasingly hesitant to participate in these ecosystems. The comparative overview highlights a fragmented legal landscape that does not adequately safeguard consumer rights and raises concerns about the long-term viability of metaverse platforms. To address these challenges, the paper proposes a hybrid framework that combines blockchain-native tools—such as smart contract arbitration—with enforceable legal standards. This approach offers a normative path forward for aligning innovation with legal accountability, helping to foster a more trustworthy, sustainable, and user-centered metaverse.