NFTs have crypto-like traits and risks, says China’s top prosecution agency

China, the country's largest organization, has warned that the country's Financial Times nft has the characteristics of virtual assets that have been banned by the state.

The Supreme people's Procuratorate of the people's Republic of China has released its own manual on the settlement of irreplaceable tokens, proposing a centralized "risk study" to accurately punish criminal offences.

In 2021, China will not only strictly check regional login passwords, but also prohibit financial institutions from providing services based on login passwords. This also led to the decline of the local industry until NFT entered the field and quickly gained credibility in the country as a digital collection different from the encryption of high-risk data. However, this is not the case in the article warning recently published by the procuratorial organs.

According to the report, although they are very popular, they may lead to risks related to network information security, accounting, management methods and other risks, especially legal disputes. The prosecutor has looked at the matter very carefully.

NFT has exclusive data identifiers for physical or virtual resource projects that can record proof of ownership in the blockchain. Chinese procuratorial organs feel that the holder cannot have ownership, especially the ownership of art and design, which can be copied and distributed.

One of the creators of the report said that in terms of the number of years of property rights, customers do not cherish the ownership of NFT digital currency purchased from the perspective of civil code. In addition, they cannot prohibit others from copying, browsing or distributing digital currency created by NFT. All rights they have include preventing others from interfering with the ownership of the NFT recorded on the blockchain.

Although China is not willing to encrypt algorithms, it has interests in life to maximize the use of blockchain for virtual assets to expand its national network infrastructure. Recently, China has released its own central bank digital currency, which has also done great harm.

The procuratorial organ shows that as an innovative application of block chain, NFT has the development potential of the actual development trend. At this point, it is not clear at this stage that China will ban NFTs and still manage it in a controlled manner.

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