The metaverse concept presents an immersive three-dimensional space for interpersonal connections, where people can socialize, learn, do business, and complete other activities. It is a digital system with its own economy, technological properties, and sensory and behavioral domains. While discourses often focus on the technological and economic feasibility of the metaverse, less is said about the implications for human identity. Identity in the metaverse is an amalgam of self-representation, branding, and behaviors, but is also dependent on technological features. This paper analyzes user identity in terms of behaviors and personal data collection and possible misuse. As such, it highlights technological, ethical, and psychological dilemmas and potential solutions before the realization of the metaverse or similar interoperable virtual networks. Specifically, we discuss questions regarding the representation of human identities, the collection and reuse of personal data, and the use of AI models for customizing user experiences. Based on our assessment of these, we propose a legal and ethical foundation for users and developers of the metaverse. Rather than averting future developments in technologies and use practices, our objective is to highlight elements where the protection of users and their experiences requires particular attention.