In China, you will need to obtain a permit to create NFT tokens

The National Copyright Administration of China (NCAC) recently launched a campaign to combat copyright infringement and piracy on the Internet. The initiative also involves the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Administration of Internet Information of the People’s Republic of China.

The NCAC is particularly concerned about the growing copyright protection problems arising from the activities of a large number of organizations working with innovative technologies. One of the areas where the authority wants to strengthen supervision is the issuance of NFTs.

The regulator considers it necessary to strengthen the supervision of copyright compliance by online businesses by investigating cases of sale and distribution of infringing products. The country will prohibit the creation of tokens using third-party products without special permission. The department said it plans to «strictly stop the unauthorized use of other people’s works of art, music, animation, games, movies and television to create NFTs and digital collections.»

Some companies have already changed the term NFT to «digital collectibles» in an attempt to distance themselves from the law.

It should be noted that this problem is a concern not only for the Chinese authorities, but also for Western companies — OpenSea recently announced that it would seriously improve its strategy to combat copyright infringement. However, this does not apply to stolen tokens — the platform is still lagging behind in this regard.