"Pixel Wars": Digital Collectibles Trading on the Internet

Abstract

With the rise of Non-Fungible Tokens (NFT) internationally, digital collection trading in China has also emerged. In the trading practices of the digital collectibles market, consumers find themselves caught in the vortex of fraud, illegal fundraising, and pyramid schemes. Legal professionals are striving to assist consumers in protecting their rights, but they face significant challenges. An analysis of the crimes and misdemeanors in China's digital collectibles trading market reveals inadequate market regulation, ineffective regulatory enforcement, and numerous other persistent issues and challenges. In response to these issues, this paper will analyze the legal challenges encountered in digital collectibles trading and propose corresponding solutions: defining the scope of regulation, clarifying the flow of funds, and drawing on regulatory frameworks from NFT markets in other regions, among other approaches. It will also analyze the criminal elements under similar circumstances, clarify the distinction between criminal and non-criminal acts, and identify the subjects of regulation within digital collectibles trading. As digital collectible trading continues to evolve, laws and regulations will require ongoing improvement to keep pace with these developments.