The Challenges of Regulation on NFT Digital Collections in China

Abstract

The exploration of digital art and cultural practices precipitated by the advent of Non-Fungible Tokens (NFTs) constitutes a burgeoning area of interest for both scholars and industry professionals. Nonetheless, the nascent industry is fraught with legal complexities that complicate copyright enforcement for owners and consumer rights, thereby introducing novel challenges in the regulation of NFT online transactions on platforms. This chapter delves into the intricacies of copyright, ownership and security issues surrounding NFT digital collections in China, employing the case study of RED’s R-SPACE—an emblematic and highly esteemed social media platform within the Chinese market. It argues that the non-complete decentralised online sphere of the NFT marketplace in China necessitates a collaborative regulatory framework involving government, platforms and consumers. This tripartite approach suggests a tailored strategy for navigating the regulatory landscape of NFTs within the Chinese context.