China Declares Theft of Digital Collections, Including NFTs, a Criminal Offense

The Chinese government has issued a legal statement asserting that the theft of digital collections, particularly non-fungible tokens (NFTs), will be treated as a criminal offense falling under theft laws. The statement provides three perspectives on the nature of this crime, classifying it either as data, digital property, or both, potentially resulting in a charge of "co-offending." Emphasis is placed on the notion that stealing a digital collection entails unauthorized access to the hosting system, constituting the crimes of illegal acquisition of computer information system data and theft.

Notably, the document recognizes NFTs as "network virtual property," highlighting their characteristics such as uniqueness, non-copyability, tamper prevention, and permanent storage facilitated by blockchain technology. Despite China's previous ban on most crypto-related activities, the recent buzz surrounding NFTs and the relaxation of keyword censorship on platforms like Xianyu indicate a potential shift in the country's approach to the digital asset landscape and point to a growing interest in NFTs.

These developments all signal China's evolving stance on NFTs and the need for legal frameworks to address emerging challenges related to NFT theft, contributing to ongoing discussions about China's NFT laws.