China has declared that stealing digital collections like NFTs is a criminal offense

China has declared that stealing digital collections like NFTs is a criminal offense

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by Max Nevskyi

3 years ago


On November 10, the Chinese government issued a statement asserting that the theft of digital collections, such as non-fungible tokens (NFTs), will be legally treated as theft. This declaration presents three perspectives on categorizing the crime of digital collection theft, initially identifying it as either data theft or digital property theft. However, the emphasis is placed on the third perspective, which considers digital collections as both data and virtual property, thereby falling under the category of "joint offense."

The statement further clarifies that the act of stealing a digital collection encompasses unauthorized access to the system where it is stored. This action constitutes a dual offense: the illegal acquisition of data from a computer information system and theft.

The act of stealing digital collections infringes upon the legal safeguards and rights associated with the crime of illicitly acquiring data from computer information systems. The discussion further expands on this matter, referring to digital collections as "online virtual property." It emphasizes that within the realm of criminal law, these collections ought to be acknowledged as a form of property.

Since property is the object of property crime, digital collections can obviously become the object of property crime. If the digital collection is stolen by intrusion into the system or other technical means, the act also damages the property law.

The statement specifically highlighted NFTs, noting that digital collections are based on the concept of NFTs as understood "internationally." These collections utilize blockchain technology to link specific assets, characterized by their uniqueness, inability to be copied, resistance to tampering, and permanent storage features.

It was mentioned in the declaration that, although China hasn't yet opened a "secondary market" for the trading of digital collections, consumers can still engage in purchasing, collecting, transferring, and destroying these assets through trading platforms. This allows them to achieve exclusive rights of possession, usage, and disposal.

Despite China's 2021 ban on most cryptocurrency activities, interest in NFTs is rising. On October 25, a local media report indicated that Alibaba's Xianyu marketplace removed search restrictions on "non-fungible tokens" and "digital assets." Earlier, on October 6, the government-run China Daily announced plans to create an NFT platform, committing around 2.813 million yuan ($390,000) for its development.

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