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Governance Studies ›› 2023, Vol. 39 ›› Issue (4): 144-156.

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The Legal Risks and Governance of Trading in NFT Digital Works

Deng Jianpeng, Ma Yingying   

  • Received:2023-05-18 Online:2023-07-15 Published:2023-08-02

Abstract:

Due to the lack of preventive mechanisms and the regulatory loopholes in the trading process, NFT digital works still face risks of intellectual property infringement, central platform operation risks, and violation of financial regulation laws. The endless trading chaos constantly challenges the existing legal system and erodes the value of NFTs. To govern these risks and maintain a healthy and orderly market environment, it is necessary to clarify the legal attributes of NFTs and establish the path of governance based on the rule of law. This includes creating the Legal rights and obligations for various types of transaction subjects from the legislative level and improving the intellectual property protection mechanisms. The transaction platforms must establish responsibility boundaries according to their operation types and the types of rights transactions. Financial supervision principles must also be optimized and gradually promoted in a compliant secondary market, which will encourage transaction platforms to actively seek compliance and form a bottom-up preventive governance system.

Key words: NFT, digital works, risk governance, platform responsibility, network virtual property

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