The court has said that NFTs are online virtual properties and government and legal authorities protect them under Chinese law.
Cryptocurrencies and related operations are completely banned in China
China’s ambitions to push the Yuan as a global currency do not even closely align with the cause of decentralization of power.
From China engages the entire crypto community in a discussion.
This had been the same for a recent update coming from China according to which a local Chinese court has ruled out its stance on the legal status of NFT. The court has said that NFTs are online virtual properties and government and legal authorities protect them under Chinese law.
This ruling has come at a time when all crypto operations are entirely prohibited in the country and most industry players have moved their bases out of China. The Hangzhou city court has pointed out the ambiguity in the language used while describing the government’s stance on the legality of NFTs.
While addressing the grievance of a user whose NFT purchase was turned down by an NFT marketplace on the basis of a lack of proper records, the court has said that NFTs have a market value, can be controlled with a limited supply, and can be traded in exchange and money. These are the characteristics that make NFTs liable to be treated as any other virtual asset and should be traded under the E-Commerce Law of the country.
The question raised by the courts will force the Chinese regulating authorities to clear their stance on the legality of NFTs in clear language. However, this decision might also push the regulations to go against the NFTs that are presently on the grey side of the spectrum. Moreover, the crypto community already had to suffer a lot due to a complete ban on cryptocurrencies by the government.
However, China’s ambitions to push Yuan as a global currency do not even closely align with the cause of decentralization of power. China is seeing BTC as a bigger challenge than USD in hindering its aspirations of global hegemony and a complete ban on cryptocurrencies and mining was an explicit expression of that fear. For now, the oligarchy of China is in no mood to create a flourishing system for cryptocurrencies or any related technologies.
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