The Chinese government has released an official legal commentary addressing the legal standing of nonfungible tokens (NFTs) in response to conflicting judicial opinions on cryptocurrency within the country. According to a statement from China’s state-controlled Southwest University of Political Science and Law (SUPL) on November 9, digital collectibles, such as NFTs, are considered virtual property protected by law due to their non-tamperable features, unique codes, and detailed transaction information.
The jurists from SUPL emphasized that digital collections exhibit characteristics of scarcity, possessing both use and exchange value. They referred to Article 127 of the Civil Code, indicating that online virtual property is a distinct object of rights, separate from property rights, creditor’s rights, and intellectual property rights, and is protected by civil law.
The legal commentary also addressed the criminal penalties associated with the theft of NFTs, considering related offenses like hacking into computer systems or data theft. SUPL jurists emphasized the technical characteristics of digital collections, highlighting their exclusivity and the loss of control by the holder if stolen.
While the secondary circulation market for NFTs in China remains closed, consumers can utilize trading platforms for operations like purchase, collection, transfer, and destruction, obtaining exclusive possession, use, and disposal rights.
China has witnessed a surge in civil disputes related to cryptocurrencies this year, with varying court rulings on the legal protection of virtual assets. Last month, the government-owned China Daily announced a grant of 2.813 million Chinese yuan ($390,000) to third-party contractors for the design of an NFT platform. In May, Chinese prosecutors declared a crackdown on “pseudo-innovations” within the NFT market.
Bitget to Invest $10 Million in Indian Startups
Cryptocurrency exchange Bitget has unveiled plans to invest $10 million over five years in startups based in India. According to a November 7 announcement, startups will have the opportunity to pitch their projects to Bitget and venture capitalists, including Sequoia Capital, Lightspeed Ventures, and Draper Labs, during the BUIDL for Web3 multichain summit in India.
Bitget aims to identify valuable and promising projects in the crypto space, providing comprehensive support to accelerate innovation in emerging technologies. To qualify for investment, projects must have a minimum viable product and incorporate multiple layers of security functionalities with auditing transparency.
Gracy Chen, Bitget’s managing director, highlighted India as the most desirable place to invest in Asia, citing the country’s consistent advancements in blockchain and overall entrepreneurial spirit. Bitget’s previous investments in Indian Web3 startups include AI-based script generator Grease Pencil, AI resume generator HAIr, and AI dermatological app Derma360.
Linekong Interactive Launches $15 Million Bitcoin Fund
Chinese tech firm Linekong Interactive, listed on The Stock Exchange of Hong Kong (HKEX), is initiating a $15 million fund named “BTC Next” dedicated to revitalizing the Bitcoin (BTC) ecosystem. Founder Wang Feng stated that the fund will accelerate novel projects developing asset issuance, exchanges, virtual machines, NFTs, and GameFi protocols on the Bitcoin blockchain.
Wang emphasized BTC Next’s participation in the early-stage research and investment of Bitcoin network ecological assets, regularly publishing crypto investment portfolios and updating the list of Bitcoin ecological crypto assets in which it invests.
Linekong Interactive, initially focused on video games and cinema, was founded in Beijing in 2007. Wang Feng, its founder, resigned as CEO in 2018 to concentrate on blockchain projects. He returned as CEO in 2022 to better integrate Linekong products with Web3.
SEBA Bank Receives License from Hong Kong’s Securities and Futures Commission
Swiss fintech SEBA Bank has been granted a license from Hong Kong’s Securities and Futures Commission (SFC). The license allows SEBA Bank to conduct regulated activities in Hong Kong, including distributing virtual asset-backed securities, advising on crypto assets, managing crypto investment accounts for clients, and handling traditional securities such as stocks.
SEBA Bank CEO Franz Bergmueller expressed satisfaction at adding the Hong Kong license to their existing licenses in Switzerland (FINMA) and Abu Dhabi (FSRA). Amy Yu, the firm’s Asia-Pacific CEO, commended the SFC for creating a facilitative environment during the licensing process.
Previously reported by Cointelegraph, SEBA Bank launched institutional Ethereum staking services in September 2023, following a successful Series C funding round that raised $119 million in early 2022.
