Put an end to legal uncertainty – While China hasn’t had enough harsh words or actions against Bitcoin and cryptocurrencies for a few years, NFTs still remained in a legal gray area. A situation which has just been remedied by the court in Hangzhou, the capital of Zhejiang province.
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Recognition of NFTs as a legal document
A few months ago, the English justice had reached the same conclusion as the Chinese court. To know, NFTs have title value. This summer, a British judge allowed documents related to court cases to be issued as non-fungible tokens. Indeed, non-fungible tokens have relevant qualities, in particular concerning the impossibility of falsifying them. Our special file dedicated to NFTs will help you to understand this technology and its interest.
According to Chinese justice, this legal vacuum had to be filled, this is the meaning of the decision taken on November 29th. According to her :
“NFT digital collections belong to the category of virtual goods. The sale of virtual goods via the Internet will be considered as electronic commerce regulated by the law on electronic commerce”.
Court ruling in the “NFT Digital Collection Blind Box” case
This type of decision has consequences for the NFT market. First, it establishes a legal framework to regulate NFTs. China becomes a new jurisdiction (after Great Britain) in which the properties of NFTs are recognized. Moreover, they are perceived as relevant within civil society. This will likely provide investors and buyers with greater confidence in this emerging technology.
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