- Theft of digital collections is classified as theft of computer information according to the announcement.
- Collections must be acknowledged as property within the context of criminal law.
On November 10, the Chinese government released a statement indicating that individuals found guilty of stealing digital collections, such as non-fungible tokens (NFTs), will incur criminal repercussions.
The statement presents three differing views on whether the theft of digital collections is classified as data theft, digital property theft, or both. However, the third viewpoint, which regards digital collections as both data and virtual property, is particularly highlighted in the announcement as categorized under “co-offending.”
Recognition as Property within Criminal Law Framework
The declaration states that the theft of digital collections amounts to theft of computer information and unauthorized access to a computer system housing these digital collections.
Furthermore, the article elaborates on the necessity for collections to be acknowledged as property within criminal law by referring to digital collections as “network virtual property.”
It was determined that the concept of NFTs “abroad” serves as the foundation for digital collections, which leverage blockchain technology to “map specific assets” with distinctive attributes.
Despite China’s inability to establish a “secondary flow market” for digital collections, the country’s announcement reassured buyers and sellers that they could utilize online platforms to complete transactions related to acquisition, sale, transfer, destruction, and other processes essential for safeguarding exclusive rights of ownership, use, and disposal.
There has been considerable discussion surrounding NFTs recently, even though China has officially prohibited nearly all cryptocurrency-related activities and transactions since 2021. The peer-to-peer marketplace Xianyu, managed by Alibaba, reportedly removed restrictions on non-fungible tokens and digital asset-related terms in its search functionality, according to local media on October 25.
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