The NFT market of China received warnings on Monday from The Supreme People’s Procuratorate of China stating that there are a lot of risks hovering around the NFT market and the authority also stressed the need for proper regulation of emerging asset classes highlighting that NFTs also share some elements of virtual assets.
NFT in China in its Early Stage
The NFT market in China is still in its early stage. Since this area is just blooming, there is still a need for proper regulation and industry standards as per the official newspaper agency of the agency. There is a monopoly in the Chinese NFT marketplace, which include scams, price manipulation, illegal fundraising and more. Moreover, some NFTs are also fake and are not minted on blockchain technology.
Wang Xia-fen, a public prosecutor working on this subject also said that there is a huge potential for digital assets to bring in a revolution provided there should be proper regulation. He also emphasised the role of digital collectibles in preserving intellectual property rights, enhancing the digital economy and also to boost digital content creation.
China has registered a huge number of NFT-related complaints and the figure just seems to increase exponentially after each passing year. In the year 2022, there were 59,700 complaints related to NFT which is an increase of around 300 times as compared to the previous year. NFTs were classified as virtual property in November 2022 by a court in Hangzhou city of China.
Su Chan, an academician at China’s Southwest University of Political Science and Law said that the NFT market in China suffers from uncontrolled copyright infringement. He also quoted the responsibility of authorities and blockchain operators of the country to tackle this issue by adhering to strict copyright protection agendas.