The Chinese government recently made a significant declaration on Nov. 10 regarding the theft of digital collections, such as nonfungible tokens (NFTs). This statement outlined the ramifications for those who steal digital collections, with a particular emphasis on the legal classification and potential consequences for such actions.
In the released statement, the Chinese government discussed the various perspectives on the crime of stealing digital collections. The government outlined three distinct views, with the first two classifying it as either data or digital property. However, the statement emphasized the third view, which sees digital collections as both data and virtual property, and how this would fall under the umbrella of “co-offending.”
Furthermore, the declaration elaborated on the specific actions that constitute the theft of digital collections, including intrusion into the system on which the collections are housed. This means that individuals who engage in these activities are not only stealing the digital collections but also committing the crime of illegally obtaining computer information system data and theft.
The statement also introduced the concept of digital collections as “network virtual property” and stressed that, in the context of criminal law, these collections should be recognized as property. This is significant because, as the statement highlighted, property is the object of property crime, and digital collections can become the object of property crime. Therefore, the theft of digital collections falls under the purview of property law and is a violation of protection laws and interests.
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The mention of NFTs in the Chinese government’s declaration is also notable. The declaration specifically established that digital collections are derived from the concept of NFTs and utilize blockchain technology to “map specific assets” with unique, non-copyable, tamper-preventing, and permanent storage characteristics.
Furthermore, despite China’s ban on nearly all crypto-related activities and transactions since 2021, including NFTs, there has been recent buzz surrounding NFTs in the country. An Alibaba-owned peer-to-peer marketplace, Xianyu, recently removed its censorship of “nonfungible tokens” and “digital asset” related keywords in its search, signaling a potential shift in the country’s approach to NFTs.
Additionally, a report by China Daily, an English-language newspaper owned by the Chinese government, announced that it was planning to launch its own NFT platform and had allocated a significant sum for a third-party contractor to design the platform up to its specifications.
The willingness to embrace NFTs and the acknowledgment of the significance of digital collections in the context of property law mark a potential shift in the Chinese government’s approach to cryptocurrencies and digital assets. While regulatory measures and legal considerations remain paramount, these recent developments indicate a growing recognition of the value and importance of NFTs and digital collections in the country.
In the broader context of the global cryptocurrency landscape, these developments in China may shape international discussions and approaches to NFTs and digital collections. As the regulatory environment continues to evolve, the impact of Chinese policies on NFTs and digital assets will be closely watched by stakeholders worldwide. This underscores the significance of the Chinese government’s recent statement on digital collections and the potential implications for the broader cryptocurrency and digital asset ecosystem.
