Is the digital collection industry worth investing? What are the legal risks in the digital collection industry?

Nov 08,2022
Is the digital collection industry worth investing? What are the legal risks in the digital collection industry?

Is the digital collection industry worth investing? What are the legal risks of digital collections? As we all know, there must be risks when there is investment, and we are more skeptical about emerging industries in the market. For example, there must be risks in digital collections in recent two years. But even if there are risks, many investors will still have great enthusiasm for such collections. So is the digital collection worth investing in? Now let's get to know.

Is the digital collection industry worth investing?

1. The investment risks of digital collections are mainly concentrated in the following aspects. First of all, some investors follow the trend of investment. When they see others buying, they buy them themselves, without considering whether they have investment value or whether the price is high or low, After they bought it, they found that they had bought a relatively high position. Then they kept falling, resulting in a big loss. So here is a reminder to all investors that they should not blindly follow the trend when investing.

2. Due to various reasons, there are relatively few investment channels for virtualized collectibles in China. If people choose an informal investment channel when investing, it is likely that their own capital security will not be guaranteed. Sometimes, because the investment channel itself is not a formal investment channel, there are especially few people involved in investment transactions in this investment channel, It is difficult to realize the virtual collectibles you invested. Therefore, when investing in this kind of investment, we must find a truly formal exchange that is recognized by everyone as having credibility or credibility.

What are the legal risks in the digital collection industry?

The development of the domestic digital collection industry has just started, and the regulatory authorities need to further clarify the compliance requirements for digital collections. But compared with virtual currency, our domestic attitude towards digital collections is more encouraging than absolute prohibition. This is mainly because digital collections can give play to cultural value to a certain extent and become a new economic growth point for us, so it is good for the industry.

However, while the digital collection industry is developing rapidly, it is also faced with many problems such as the platform "thunder" running away, works infringement, hype, etc., which put forward higher requirements for the compliance of digital collections, and consumers should also have a stronger sense of discrimination. "De financialization" is the development route of the domestic digital collection market, so the legal risks of digital collections are mainly concentrated in six aspects: platform qualification, financial supervision, market supervision, data security, intellectual property rights and criminal law.

1. Platform qualification

If the digital collection trading platform wants to operate in compliance, it needs to have complete qualifications. The platform qualifications include: blockchain information service filing, value-added telecommunications business license, Network Culture Business License, artwork business filing, network publishing service license, auction business approval certificate, information network audio-visual program license, trading house license and other certificates. The platform can only operate after filing with relevant institutions.

2. Financial supervision

The financial risks in the digital collection market are mainly concentrated in three aspects: virtual currency transactions, secondary markets and money laundering crimes. In the Notice on Further Preventing and Disposing of the Speculation Risk of Virtual Currency Transactions, the state has clarified the main characteristics of virtual currency: issuance by non monetary authorities, use of encryption technology and distributed accounts or similar technologies, and existence in digital form, etc., and has also clarified that business activities related to virtual currency, such as token issuance and financing, virtual currency derivatives transactions, are illegal financial activities. Here, the platform should have a sense of responsibility, and consumers should also have a sense of identity.

3. Market supervision

At present, the focus of digital collection market supervision is still to curb the legal risks of collection speculation and digital collection transactions in the form of "blind boxes". Taking the first NFT infringement case of Hangzhou Internet Court as an example, copies of digital works exist on the trading platform in the form of NFT, which is characterized as "digital goods" and naturally included in the scope of market supervision.

4. Data security

Data compliance includes personal information protection and data security. Under the existing regulatory requirements, the data collection platform needs to conduct real name authentication for purchasers, whether based on the traceability of collections or for reasons such as preventing financial and money laundering risks. The platform will also generate and store personal information related to transactions in the transaction process. Personal information protection is one of the compliance requirements that the data collection platform needs to pay attention to. In addition, the platform should also handle and ensure data security according to the requirements of the Data Security Law.

5. Intellectual Property

The intellectual property legal risks of digital collections include: direct copying or copying of existing works, unauthorized secondary creation, distribution of collections beyond the scope of authorization, trademark infringement, etc. Therefore, the platform should review the distribution subject and works, and both parties should establish the scope of authorization and ownership of rights.

6. Criminal

As a new concept of the meta universe, digital collections have attracted a large amount of funds. The "playing methods" of various digital collection platforms emerge one after another, but the supervision is not yet clear, which leads to a large number of gray areas related to punishment in the field of digital collection. For example, it is suspected of illegal operation, illegal absorption of public deposits, fund-raising fraud, fraud, organizing and leading pyramid selling activities, money laundering or concealing crimes, non trust crimes and helping trust crimes.


Speaking of this, I believe that you have a certain understanding of whether the digital collection industry is worth investing in and what legal risks the digital collection industry has, but as long as the chosen channel is a formal investment in virtual collections, there will be little risk, because this virtual collection uses blockchain technology to record information, These data information generated in the transaction process will be recorded on the distributed ledger of the blockchain network, so the reliability of the transaction can be guaranteed with this tamper proof ledger for recording, and then the authenticity of the data can also be guaranteed. In addition, this digital collection itself has ornamental and collection value, so in the long run, value investment can obtain very rich returns.