The document discusses building the UK metaverse and outlines recommendations for the UK government. It defines the metaverse as open, interoperable, and decentralized virtual environments that will allow citizens to interact and do business in new ways. The metaverse will be formed from cutting-edge 3D simulations and worlds powered by technologies like blockchain, AI, and distributed computing. The metaverse could generate billions for the UK economy and positively impact society through education, healthcare, and problem-solving. However, the UK risks falling behind if it does not develop its own pro-innovation vision and strategy for the metaverse.

1. Building the UK Metaverse:
A pro-innovation vision
for virtualised environments
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June 2023

2. 2
What is the Metaverse?
The next digital transformation of human activity enabled by open, interoperable and decentralised virtual
environments where citizens will be able to interact, create and grow businesses in new ways.
The metaverse will be formed by virtualised environments
(Cutting edge 3D simulations or worlds) that are:
Open: Not limited in terms of access (either through headsets or apps)
Interoperable: Able to share data between them – allowing users
to move freely.
Decentralised: Not owned by one single company or entity.
Ownership of these virtualised environments will likely be shared
and governed by users.
The technologies enabling these elements, such as blockchain,
AI and distributed computing, are developing and progressing
independently but will come together to form the metaverse.
Building the UK metaverse
June 2023
METAVERSE
Virtualised
environments
Distributed
Computing
Augmented
&Virtual
reality
Blockchain
Fintech
Artificial
Intelligence

3. 3
The metaverse and the UK opportunity
The metaverse, and the revolutionary technologies that underpin it, will enable companies to integrate the
physical and digital world in a way that will have far-reaching social and economic opportunities. The UK is
well-placed to capitalise on these given its existing technology clusters, thriving creative sectors and skills
base.
─ The total revenue of the metaverse in the UK could reach £1.84bn in 2023, growing to
£15.87bn in 2030.
─ Almost half of UK consumers think the metaverse will become widely used
in the next 10 years.
─ From the tourism and creative sector to manufacturing, the range
of economic activities that will become available in the metaverse
offers growth opportunities to all industries.
─ Virtualisation in the metaverse could also positively impact UK society,
including by helping to:
Building the UK metaverse
June 2023
Skyral Platform
The Ministry of Defence commissioned
Improbable to develop the Single Synthetic
Environment (SSE) Technology Demonstrator
to investigate the large-scale, multi-domain
simulation of military scenarios.
These complex environments support
training, operational planning
and real-time decision-making.
This evolved into the Skyral platform, used to
run massive multi-domain simulations that
consolidate intelligence from operational
domains into a virtual layer accessible to
planners and units on the ground via various
immersive technologies.
Educate future
generations in new
interactive ways.
Conduct and simulate
medical procedures.
Solve complex
problems such as
climate change and
mitigate national
security risk

4. Early international interest in developing the metaverse
However, the UK’s current approach to the metaverse could also result in it missing out on future
investment and talent. The EU and other jurisdictions are already considering their own strategies for
developing and regulating the metaverse. The UK is at risk of falling behind and becoming a rule-taker.
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“The metaverse is an uncharted digital continent with indefinite potential. Anyone can realise their dreams...The Ministry will
ensure to implement the diverse support strategies faithfully so that South Korea can become a leading global metaverse country.”
Former Minister of Science and ICT, Lim Hyesook,
at the launch of pan-government strategy on Metaverse
Building the UK metaverse
June 2023
[Our commissioned report] on the metaverse is an important milestone in the development of metaverses and provides action levers
that are both practical and actionable to enable French technological, cultural and industrial players to continue innovating.”
Jean-Noël Barrot,
French Minister for Digital Transition and Telecommunications
“We intend to shape from the outset the development of truly safe and thriving metaverses…We also have the competitive advantage
of content with our large cultural and language diversity and our thriving gaming sector.”
Thierry Breton,
Commissioner for Internal Market of the European Union

5. Our Six Primary Recommendations
The UK should work with metaverse developers to create its own distinct vision for the metaverse and
positively differentiate itself from other jurisdictions.
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1 The UK government should set out a metaverse strategy to support the development of the metaverse. This approach should highlight
the need to let metaverse technologies develop before adopting specific primary legislation. Instead, the government should (i) provide
principles for regulators to follow when considering the regulation of metaverse technologies and (ii) develop a central coordination
function.
2 The central coordination function and regulators should maintain a regular dialogue and collaborate with metaverse service providers
and other stakeholders to review existing regulations and co-design new regulations where gaps may exist.
3 As part of its strategy the UK government should identify metaverse use cases and business models that could drive investment in the UK
and support businesses in those areas to grow and export.
4 At the heart of the government’s strategy should be the principle of an open, decentralised, competitive metaverse that enables firms to
trade on fair and reasonable terms. This should be primarily delivered by providing the CMA with the powers outlined in the Digital Markets,
Competition and Consumers Bill.
5 As the market continues to develop, the Competition and Markets Authority should conduct an initial review of the market for metaverse
technologies to ensure the market remains competitive.
6 The UK government should ask the UK Intellectual Property Office (UKIPO) conduct a study into the impact of the metaverse on the
infringement and enforcement of intellectual property in the UK.
Building the UK metaverse
June 2023