China to protect NFTs
The Chinese government has unexpectedly promised NFTs legal protection.
The Chinese government has formally released a legal commentary on how to handle incidents of nonfungible tokens (NFTs) theft and their status as legally protected virtual property in response to a number of often divergent judicial decisions on the position of cryptocurrencies in the nation.
As per a publication released on November 9 by the state-run Southwest University of Political Science and Law (SUPL) in China, digital collectibles like NFTs, as opposed to regular online images, meet the criteria of online virtual property because of their unchangeable attributes, distinct codes, and comprehensive transaction data.
The jurists state that “this highlights the scarcity of digital collections, which have both use value and exchange value.” “It is evident from the perspective of civil law that online virtual property is considered an object of rights that ‘is different from property rights, creditor’s rights, intellectual property rights, etc. and is protected by civil law,'” per Article 127 of the Civil Code.
It is also stated by jurists that stealing NFTs has relevant criminal penalties. These might be assessed alongside associated offenses committed during the theft, including data theft or computer system hacking.
“Technical features of digital collections that make them uncopyable show that the owner has complete control. The possessor loses exclusive control if the digital collection is taken by someone else, according to SUPL jurists.”
Customers may trust on the trading platform to finish tasks like purchase, collection, transfer, and destruction and get exclusive possession, use, and disposal rights even if our nation hasn’t yet opened the secondary circulation market for NFTs.
This year has witnessed an increase in cryptocurrency-related legal cases in China, with some courts holding that virtual assets are protected by the law and others not. The Chinese government-owned publication China Daily said last month that it will be awarding a grant of 2.813 million Chinese yuan ($390,000) to outside contractors to help them create an NFT platform. Chinese prosecutors declared in May that they will take tough measures against “pseudo-innovations” in the country’s NFT business.
