China Cracks Down on NFT Theft, Signals Potential Shift in Crypto Policy

The Chinese government has declared that the theft of data-related digital collectibles, including Non-Fungible Tokens (NFTs), will be treated as a crime of illegally obtaining and stealing computer information system data. The announcement recognizes digital collections as “virtual property on the network” and explicitly includes them in criminal law as objects of property crimes. The statement defines NFTs as unique, permanently stored assets that cannot be copied or tampered with. Although China officially banned most cryptocurrency activities in 2021, interest in NFTs appears to persist. Recent developments, such as Alibaba’s Xianyu marketplace removing censorship on NFT-related keywords and the China Daily, a government-owned platform, expressing interest in launching its own NFT service, suggest a potential shift in attitude. Some speculate that Hong Kong’s more lenient blockchain and cryptocurrency policies may serve as a trial before mainland China considers easing restrictions on NFTs and related activities. Despite skepticism about recognizing cryptocurrencies as official currencies, there is anticipation of a gradual easing policy for secondary assets like NFTs.

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