NFT Platform iBox Fined 400,000 RMB for Violating China's Anti-Unfair Competition Law
Terrill Dicki Jun 21, 2023 09:46
Popular Chinese NFT platform iBox.art, has recently faced a penalty of 400,000 RMB for violating China's Anti-Unfair Competition Law. The law aims to ensure fairness in business promotions, stating that the maximum value of a top prize in a lottery-style sales event should not exceed 50,000 RMB.
Hainan Chain Box Technology Co., Ltd, a company associated with the popular Chinese NFT (digital collectible) platform iBox.art, has recently faced a penalty of 400,000 RMB for violating China's Anti-Unfair Competition Law. The law aims to ensure fairness in business promotions, stating that the maximum value of a top prize in a lottery-style sales event should not exceed 50,000 RMB.
During two promotional campaigns, Hainan Chain Box Technology Co., Ltd disregarded this regulation by offering extravagant prizes. These included a Maserati Levante and a Maserati Ghibli, valued at 797,800 RMB and 685,800 RMB respectively (including taxes), far exceeding the legal limit.
The company's actions have come under scrutiny following user complaints about iBox.art abruptly shut down the digital collectible resale market without obtaining user consent. This move effectively blocked transactions involving collectible items.
Furthermore, various police departments, such as the Huadu District branch of the Guangzhou Municipal Public Security Bureau and the Xindu District branch of the Chengdu Municipal Public Security Bureau, have launched investigations into allegations of fraud against Hainan Chain Box Technology Co., Ltd.
China has been closely monitoring NFTs and digital collectibles due to the potential risks involved. The Supreme People's Procuratorate of China, the country's leading legal agency, recently issued warnings about the dangers of NFTs, emphasizing the need for new legislation to govern this emerging asset class. The agency highlighted that NFTs share characteristics with virtual properties and urged caution in their trading.
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