The Chinese Government’s Stance on NFT Theft
The Chinese government has issued a statement on November 10th stating that anyone who steals digital collections, including nonfungible tokens (NFTs), will be subject to theft sentences.
The statement presents three perspectives on the type of crime related to the theft of digital collections, categorizing it as either data or digital property. However, it emphasizes that the third perspective, which views digital collections as both data and virtual property, falls under the umbrella of “co-offending.”
According to the statement, stealing a digital collection involves intrusion into the system where it is stored, thus committing the crime of illegally obtaining computer information system data and theft.
“The theft of digital collections violates the protection law and interests of the crime of illegally obtaining computer information system data.”
The statement further classifies digital collections as “network virtual property” and asserts that they should be recognized as property in the context of criminal law.
“Since property is the object of property crime, digital collections can obviously become the object of property crime. If the digital collection is stolen by intrusion into the system or other technical means, the act also damages the property law.”
NFTs are specifically mentioned in the declaration, highlighting that digital collections are derived from NFTs abroad and utilize blockchain technology for asset mapping with unique, non-copyable, tamper-preventing, and permanent storage characteristics.
The statement acknowledges that China has not opened a “secondary flow market” for digital collections but allows consumers to use trading platforms for various operations such as purchases, transfers, and disposal.
Despite China’s ban on most crypto-related activities in 2021, there has been recent interest in NFTs. For instance, Xianyu, an Alibaba-owned peer-to-peer marketplace, removed censorship of NFT-related keywords in its search function. Additionally, a Chinese government-owned English-language newspaper announced its intention to create its own NFT platform.
Hot Take: The Future of NFTs in China
The Chinese government’s stance on NFT theft reflects its evolving approach to digital assets despite its previous ban on crypto-related activities. With recent developments indicating a potential shift in attitude towards NFTs and digital collections, it remains to be seen how this space will continue to evolve within China’s regulatory framework.
Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats.