TechFlow news, on October 12, the WeChat official account of Laiwu District People's Court in Jinan City released Case No. 167 of Shandong Province Court's typical cases applying the Civil Code: Determining the Legal Nature of Digital Collectibles and the Validity of Transaction Acts (Yang v. a Cultural Creative Company, a dispute over a sales contract). The ruling highlights that digital collectibles are a form of virtual property on the internet. Currently, China has not enacted any laws explicitly prohibiting the issuance or trading of digital collectibles. Civil transactions involving digital collectibles between parties should be deemed legal and valid as long as the parties have the requisite civil capacity and their expressions of intent are genuine. Digital collectibles possess both collectible and investment characteristics, entailing significant market risks. Purchasers who buy digital collectibles with the primary aim of profiting from price differences in secondary market transactions should not be recognized as consumers under the Consumer Rights Protection Law and must bear corresponding risks arising from market price fluctuations.
