Enforcement Actions Against NFT Theft in China
Authorities in China are increasing their efforts to combat the growing problem of theft in digital collection platforms amid legal uncertainties governing digital collections, including non-fungible tokens (NFTs).
Legal Framework for Digital Collections
In the existing legal framework in China, the robbery of digital collections falls under three types of crimes, depending on how they were acquired. The first two categorize digital collections as either data or digital property, subjecting suspects to laws governing illegal procurement of computer information system data and property laws. The third perspective combines electronic data and property elements, treating the theft of NFTs as a crime under “co-offending.”
Support for the Third Perspective
Several Chinese academics have expressed support for the third perspective, which aligns with efforts to improve China’s digital economy.
Adoption of NFTs as Online Virtual Property
Chinese courts are adopting a similar stance toward NFTs, with a Hangzhou court’s judgment describing digital collectibles as online virtual property.
Surge in NFT-Related Crimes
The State Administration for Market Regulation in China has reported a surge in NFT-related crimes since 2022, receiving 59,700 complaints regarding asset theft, high transaction fees, and price manipulation.
Challenges in NFT Investments
The Supreme People’s Procuratorate of China issued a warning to residents against investing in digital assets due to the challenges of price manipulation, scams, and unauthorized fundraising.
Despite the warning and a blanket digital currency ban in 2021, NFT activity has surged in popularity in China, influenced by speculative activity and the government’s interest in driving digitization.
NFT Crime Crackdown in China
Watch the video to learn more about the crackdown on NFT crime in China.
### News source: coingeek.com