China Court Defines NFT as ‘Virtual Property’

Although NFTs are a digital asset, there are still uncertainties about under which title they should be evaluated from a legal point of view. A court in China has defined NFT as online virtual property that must be protected by law. In a case where NFTs had to verify their legal nature, the court said NFTs are “digital assets belonging to the category of virtual property”.

China’s Hangzhou court ruled that NFT has the characteristics of value, rarity, controllability and tradability. In addition, the court underlined that these properties should be protected by law. The court ruled that the legal qualifications of the NFT collections must be confirmed for a lawsuit. Following this ruling, the court noted that Chinese law did not explicitly stipulate legal qualifications for NFT collections.

Also of note, with the crypto ban, China has sought to separate NFTs from crypto with a government-backed blockchain project to support the distribution of non-crypto NFTs paid for in fiat money. Finally, the court confirmed that NFT technology is unique digital assets powered by blockchain. He also stated that he owns the intellectual property rights of the collections.

All-Time High in Daily Demand

Daily demand for avatar NFTs from social media platform Reddit has reached an all-time high, according to the latest data. According to data provided by Dune Analytics, NFT minting numbers on a daily basis on social media platform Reddit broke an all-time record. Covering a series of NFTs based on the Polygon (MATIC) blockchain, Collectible Avatars garnered a lot of attention, reaching a unique mint count of over 255,000 on Saturday. This collection of Reddit last broke a record with 200,000 daily mints in August.