China Declares Theft of Digital Collections, Including NFTs, a Criminal Act
Summary:
The Chinese government has issued a statement declaring the theft of digital collections, including Nonfungible Tokens (NFTs), as a criminal act subject to theft charges. Such an act also constitutes a crime of illegally obtaining computer information system data. Their declaration emphasized that digital collections should be considered property in legal context, and therefore are potential subjects of property-related crimes. Despite previous restrictions on crypto-related activities, recent indications suggest a growing interest in NFTs in China, with reports of lifted restrictions on key terms, and plans to establish an NFT trading platform.
On November 10, the Chinese Government issued a statement deeming the act of pilfering digital collectibles, including Nonfungible Tokens (NFTs), liable to theft. The document presents three potential categorizations for the infraction, namely viewing it as stealing data or digital assets. However, the declaration places emphasis on the third perspective which perceives digital collectibles as a blend of data and virtual goods, falling under the class of 'co-offending.' The statement mentions that the act of theft extends to unauthorized access of the hosting system, which simultaneously breaches the law of illicit procurement of computer system data. This transgression, according to the communique, tramples over the legal protection laws and user rights.
The statement uses the term 'network virtual property' to describe digital collectibles, emphasizing their recognition as property in legal parlance. It underlines digital collectibles as possible subjects of property-related crimes, especially in situations where the digital assets are filched via system intrusion or similar methodologies. This also violates property law.
In relation to NFTs specifically, the statement defined digital collectibles as a derivative of the concept of NFTs internationally, utilizing blockchain technology to ‘represent specified assets’ featuring unique, non-duplicable, immune to tampering, and permanently stored properties. Despite China's closure of the 'secondary circulation market' for digital collectibles, the statement clarified consumers can still use trading platforms to perform various operations like purchasing, collecting, transferring, destructing and attain exclusivity in possession, usage, and disposal.
Since last year, China has established prohibitions on virtually all activities and transactions linked to cryptocurrencies, except for merely owning them. Simultaneously, there's been a significant buzz around NFTs. A report from Chinese media on October 25 indicated that Alibaba's peer-to-peer marketplace, Xianyu, lifted its restrictions on phrases related to 'nonfungible tokens' and 'digital assets.' Preceding this, China Daily, a government-owned English language newspaper, declared its intentions to establish an NFT platform, offering 2.813 million yuan (391,000 USD) to a third-party contractor for design and development as per their requirements.
Published At
11/10/2023 11:44:05 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.