The Hangzhou City Court has been the first to declare NFTs as virtual private property. The Chinese government has taken another step towards the inclusion of the crypto ecosystem and web3 in its country with a new law regarding NFTs that its court has recently approved. With this initiative, it joins the rest of the countries, especially those in Asia, which have been advancing leaps and bounds in terms of regulation in recent months.
In the article published by the court itself, it is stipulated that "the object has the characteristics of property rights such as value, scarcity, control, and interchangeability" and that "it belongs to the virtual property of the network" Therefore, "it should be protected by the laws of the country." Since Chinese laws do not stipulate the issue clearly, the city of Hangzhou has presented this law in court.
The court believes that NFTs combine the original expression of the creator and this gives it value as copyright. Therefore, they consider that NFTs are unique digital pieces established on the blockchain and its mechanisms.
For this reason, NFTs must now be considered virtual property and in the event of carrying out transactions with them, they will be considered as internet digital assets and will have the same treatment as transactions carried out in e-commerce, and will be under the regulation stipulated by the E-commerce law.
This is just another step in the advances that many Asian countries are taking toward adoption. Just last May, Shanghai also stipulated that Bitcoin would be subject to virtual property rights.
More and more countries are advancing in the regulation of the crypto and web3 ecosystem. Nobody wants to be left behind.