The Chinese government has unveiled regulations recognizing non-fungible tokens (NFTs) as “network virtual property.” After introducing an outright ban on crypto transactions in 2021 this marks a significant shift in the nation’s stance on crypto-related assets.
The government highlighted that these digital assets have unique codes and non-tamperable features. Which is why they can now be considered as objects of property crime. Offenders will be subject to criminal penalties.
Their statement also underscored that while China doesnt have a “secondary flow market” for these digital assets. However; consumers can use trading platforms to buy, collect, transfer, or dispose of these assets. It will ensure exclusive ownership and control.
Chinese court gave protection to NFTs
In December 2022, Todayq News reported that the Hangzhou Internet Court provided clarity on the legal status of NFTs. The court declared NFT collections as online property deserving protection under the country’s laws.
As per the court, NFTs exhibit “object characteristics” of “property rights,” including value, scarcity, controllability, tradability.
The court’s stance had brought relief to those puzzled by the legal standing of NFTs. Despite recognizing the need to “stipulate” the “legal attributes” of NFT digital collections, the court’s affirmation offered a some ray of optimism for Chinese NFT enthusiasts.
This recent development showcased China’s different by evolving approach to the digital asset sector. It could be hinting at a potential shift in the perception of blockchain-based assets despite the previous crackdown on crypto activities.