China settles first dispute over NFT

 An NFT exchange was fined for trading infringing works, marking the first time China has issued

The identity of the seller was not released. But according to the court ruling, the NFTCN exchange did not check whether the creator of the NFT is the rightful owner of the work. As a result, the platform "facilitated the violation of the right to disseminate work online". In addition, since exchanges directly profit from NFT through charging transaction fees, they should be held accountable for piracy.

BigVerse was ordered to pay 4,000 CNY (611 USD), and had to prevent the circulation of the aforementioned NFTs by sending them to an "eater address". This is the term for a wallet address that contains digital assets but does not have a private key, so it cannot make transactions, which means that the above NFT is "burned".

The problem of theft and piracy in the field of NFT is not new in the world, including in Vietnam. However, this is the first time that a Chinese court has issued a landmark ruling related to the NFT and could serve as a reference model for similar situations in the future.

According to SCMP, despite not supporting cryptocurrency trading and repeatedly warning people about risks with digital assets, China still accepts NFT-related activities. The NFT community in this country has also formed and thrived. However, due to the lack of clear control, fraud, theft and piracy still occur.

Ni Longyan, an expert at the Law Research Center of Zhejiang University, said that the Hangzhou court ruling that indirectly confirmed the NFT transaction in China would be subject to the rights related to the dissemination of information. online news. Before that, users of this country were still arguing about the issue.

“The ruling shows that blockchain platforms have higher supervisory obligations than other platforms, like e-commerce,” Ni Longyan said. China-based network service providers are inherently protected and generally under no obligation to actively review the information on their platforms.

However, according to the researcher, the outcome of this incident does not mean that all NFTs will be protected, especially those that are traded in cryptocurrencies.
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