China Introduces Criminal Consequences for Stealing Digital Assets, Including NFTs
The Chinese government has made an official announcement stating that the theft of digital collections, including nonfungible tokens (NFTs), will now be treated as property theft, representing a significant shift in the country’s approach to regulating digital assets.
On November 10, the Chinese government issued a statement that carries great importance regarding the legal status of digital collections, such as NFTs, within its jurisdiction. This declaration highlights the nation’s stance on digital property rights and cybercrime in a regulatory environment known for its strictness.
The statement presented three different perspectives on how to categorize the theft of digital collections. The first two viewpoints classify it as either data theft or digital property theft. However, it is the third perspective that considers digital collections as both data and virtual property, which falls under “co-offending.”
This approach emphasizes the complex nature of digital asset theft, involving the invasion of computer systems and the theft of virtual property.
The statement also clarifies the dual nature of such theft by affirming that stealing a digital collection involves unauthorized access to the system hosting it, thus violating laws that protect computer system data and property rights.
The Chinese government defines digital collections as “network virtual property” and asserts their recognition as property within the context of criminal law. This classification is significant because it implies that digital collections can be the subject of property crimes.
NFTs, a technology that has predominantly been developed outside of China, utilize blockchain to create unique and non-replicable digital assets with secure and permanent storage features. Despite China’s ban on most cryptocurrency-related activities in 2021, these recent developments suggest a more nuanced approach towards digital assets like NFTs.
Interestingly, there have been signs of growing interest in NFTs within China. For example, on October 25, Alibaba’s Xianyu lifted restrictions on the search terms “nonfungible tokens” and “digital asset.” Additionally, on October 6, the state-run China Daily announced its plans to develop its own NFT platform, allocating 2.813 million yuan (equivalent to $390,000) for its design and implementation.
Read more: Philippine police release over 1,000 prisoners forced to perform crypto scams. Follow Us on Google News.
