China has taken a significant step in the legal treatment of digital assets by declaring that stealing digital collections, including NFTs (nonfungible tokens), is now a criminal offense. This decision, announced on November 10th, marks a new understanding of digital collections as data and virtual property. The Chinese government’s statement underlines this shift, bringing these assets under the umbrella of “co-offending” in criminal law.
Legal Recognition of Digital Collections as Property
The statement clarifies that theft of digital collections involves intrusion into the system where these assets are housed, making it theft and illegally obtaining computer information system data. Additionally, digital collections are named as “network virtual property,” which is pivotal in criminal law.
Implications for NFTs and Blockchain Technology
The Chinese government specifically mentioned NFTs in its declaration, acknowledging their unique, non-copyable, tamper-proof, and permanent storage characteristics. Despite China’s ban on crypto-related activities since 2021, there’s a growing interest in NFTs within the country. However, China has not opened a “secondary flow market” for these digital collections.
Hot Take: China’s Bold Step in Digital Asset Protection
This decision by the Chinese government is not just a legal precedent but also a bold step into the future of digital asset protection. It reflects an evolving understanding of property in the digital age and sets a benchmark for other nations grappling with similar issues.
Source: China Court
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