Special Declaration: This article is an original work of Mankun Law Firm. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters.
Special Declaration:
This article is an original work of Mankun Law Firm. It represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. For reprinting permissions, please contact Mankun Law Firm staff at: MankunLawFirm
The Dingfeng Cultural Creativity NFT Digital Collectibles Platform officially launched on September 16, 2023. According to official statements, as of the date of this writing (September 25), the number of registered users reached 57,330, and the value of consigned coins reached 297,101. The platform integrates two payment channels, Sande and Yeepay, and utilizes Blockchain-based Service Network (BSN) services.
Source: Dingfeng Cultural Creativity Platform Page
The Dingfeng Cultural Creativity NFT Digital Collectibles Platform is operated by Hainan Shansheng Sanshi Technology Co., Ltd. According to official channels, Hainan Shansheng Sanshi Technology Co., Ltd. was established in June 2023 with a registered capital of RMB 1 million. Natural person He Shuyuan holds 99% of the equity, and natural person Hua Dingfeng holds 1% of the equity in the company.
Core Features
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Consigning, Purchasing, and Gifting Digital Collectibles
Like most digital collectible platforms, Dingfeng Cultural Creativity launches new collections and provides users with channels to purchase and consign digital collectibles within the platform. Additionally, the platform offers a gifting channel, allowing users to transfer digital collectibles in and out.
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Digital Collectible Blind Boxes
As of the publication date of this article, the platform has a feature page for this function, but no related activities have been launched temporarily.
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Upcoming Platform Features
(1) Redemption Mall
The platform has introduced a Redemption Mall section. Dingfeng Gold Diamond is the universal token of Dingfeng Cultural Creativity and can be exchanged for various physical items and collectibles in the Redemption Mall. Similarly, as of the publication date of this article, the platform has a feature page for this function, but no related activities have been launched temporarily.
The platform features a leaderboard (the “Hall of Glory”), including rankings such as “Collection Master,” “Top Buyer,” “Ultimate Trader,” and “Genesis God.” Currently, the platform promotes the “Collection Master” leaderboard, with scoring rules based on comprehensive values calculated under the collectible comprehensive value system.
According to the latest announcement from the Dingfeng Digital Collectibles Platform, the operations team will introduce more features based on the current platform status, including batch purchasing functions and adjustments to price limits for limited-price collectibles.
1. Scope of Users’ Rights over Digital Collectibles
The National Internet Finance Association of China, the China Banking Association, and the Securities Association of China jointly issued the “Initiative on Preventing Financial Risks Related to NFTs.” This initiative clarifies that NFT products must consider the relevant restrictions under the Law on the Protection of Consumer Rights and Interests.
Therefore, from the perspective of consumer rights protection, platform operators should clearly assume the obligation to disclose true, accurate, and complete information related to NFT or digital collectible transactions in their platform service terms or user agreements. They must fully inform purchasers of the scope of rights acquired through digital collectible exchanges and any usage restrictions, thereby safeguarding purchasers’ rights to know, right to choose, and right to fair trading as consumers.
According to the platform’s user agreement or relevant pages, the platform has provided corresponding notices regarding restrictions or provisions on the intellectual property rights of digital collectibles circulating on its platform. Therefore,the issuer or original creator of the digital collectibles has not granted purchasers full commercial usage rights over the purchased digital collectibles, nor has it granted purchasers the right to use their purchased digital collectibles to create creative derivative works.。
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Validity Risks of Digital Collectible Purchases by Minor Users
According to the rules displayed on the platform page, the platform restricts the purchase of digital collectibles to mainland China users who are at least 14 years old and have completed real-name authentication. Thus, the platform permits not only adults but also minors aged 14 and above to buy and sell digital collectibles on the platform.
Under the Civil Code of the People’s Republic of China, minors aged eight and above are persons with limited capacity for civil conduct. Civil juristic acts performed by them shall be represented by their statutory agents or require the consent or ratification of their statutory agents. However, they may independently perform civil juristic acts that are purely beneficial or commensurate with their age and intelligence.
In light of the aforementioned legal provisions, the act of minors aged 14 and above purchasing digital collectibles may require the consent or ratification of their guardians, especially in cases involving large-value transactions. Such transaction behaviors are often deemed clearly incompatible with the minor user’s age and level of intelligence.
Therefore, prior to obtaining guardian consent or ratification, the act of purchasing digital collectibles remains in a state of pending validity. Consequently, if the guardian refuses to ratify the transaction, such transaction behavior shall have no legal effect.In other words, if a minor’sguardiandiscovers that their child has engaged in transactions on the platform, they may request the platform operator/seller to refund the amount paid by the minor, which may to some extent affect the stability of transactions on the platform.。
In our past experience with numerous digital collectible platforms, user age restrictions are generally set at 18 years or older, or even 21 years or older. This ensures that orders on such frequently used platforms can take effect steadily, fostering counterparty trust that transactions will proceed normally and be completed successfully.
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Completeness of Qualifications and Licenses
According to the promotional statements on Dingfeng Digital Collectibles’ official WeChat account, the platform has obtained the Value-Added Telecommunications Business Operating Permit (including ICP & EDI), ICP filing, and cybersecurity filing, claiming complete qualifications and licenses.
Through inquiries via public channels, Hainan Shansheng Sanshi Technology Co., Ltd. has indeedobtained filingsICPand correspondingly displays these certificates at the footer of its APP homepage.
However, the author has not found records indicating that Hainan Shansheng Sanshi Technology Co., Ltd. has obtained filing for blockchain information services, nor has the author found records of its acquisition of ICP/EDI permits or cybersecurity filings. It is recommended that the company promptly handle the relevant qualifications, licenses, and filing procedures to avoid the risk of administrative penalties.
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Preventing the Financialization of Digital Collectibles
In April 2022, the National Internet Finance Association of China, together with relevant departments, issued the “Initiative on Preventing Financial Risks Related to NFTs,” stating, “Resolutely curb the tendencies toward financialization and securitization of NFTs, and strictly prevent the risks of illegal financial activities.” As discussed in our previous assessment articles, after many digital collectible platforms opened secondary trading markets, the premiums on digital collectibles became excessively high, posing significant risks of financialization. Consequently, many platforms directly restrict secondary trading.
Although the Dingfeng Digital Collectibles Platform has currently opened a consignment market, it strictly stipulates that “please do not engage in speculation, over-the-counter trading, fraud, or any other illegal use of digital collectibles,”which, to some extent, actively fulfills the platform’s obligation to prevent the financialization of digital collectibles.
However, the author notes thataccording to the platform’s relevant price limit announcements, Dingfeng imposes price limits on certain digital collectibles, but the upper price limits remain quite high, reaching the thousands. In substance, the platform has only implemented “semi-price limits.” Furthermore, the platform adjusts the upper price limits of collectibles in response to fluctuations in their value. In short, there remains a risk of financialization for digital collectibles traded on the platform. The platform should take measures to prevent this to avoid excessive premiums on digital collectibles.
Since mid-2023, new digital collectible platforms have emerged in large numbers. Mankun lawyers have conducted assessments of a considerable number of digital collectible platforms, revealing that most platforms possess a certain degree of compliance awareness and strive to align with compliance requirements. While it is positive for platform operators to have compliance awareness, whether compliance measures are fully implemented varies, with issues arising due to cost considerations or business reasons. Having competed on features in the first half of the year, platforms might consider competing on compliance in the second half. It is not enough merely to demonstrate determination and awareness of compliance in platform promotions; actions must align with publicity. Platforms should proactively embrace regulation, meeting at the summit.
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