Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions

Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions

China’s Tencent Holdings plans to close down its non-fungible token (NFT) platform Huanhe solely a yr after its launch. The social media big has reportedly made the choice due to the strict ban on the resale of NFTs imposed by the authorities in Beijing.

Huanhe to Close Down a Year After Launch as China Curbs NFT reselling

Shenzhen-headquartered expertise conglomerate Tencent is getting ready to close down its NFT platform as early as this week, in response to a report by Chinese media outlet Jiemian, quoted by the South China Morning Post. The transfer comes amid restrictions on the secondary buying and selling of NFTs within the People’s Republic that are stated to have harm the platform’s enterprise potential.

Jiemian is citing unidentified sources from Tencent however the firm has kept away from offering an official touch upon the matter. Huanhe, which points and distributes blockchain-based digital collectibles, was launched only a yr in the past.

All NFTs on the app are already marked as “offered out,” though customers can nonetheless go to augmented actuality artwork exhibitions. Another report quoting a unique Tencent supply, from the state-owned media Yicai Global, reveals that buying and selling halted in early July in anticipation of a crackdown.

Huanhe was developed by Tencent’s Platform and Content Group (PCG), which was hit onerous by lay-offs earlier this yr. If the NFT unit terminates actions, this may mark a serious retreat by Tencent from the market of digital collectibles, the SCMP notes.

In June, Tencent’s social media app Wechat announced its intentions to ban public accounts facilitating secondary buying and selling or providing steering for non-fungible tokens. A little bit later, the Tencent News app stopped promoting NFTs.

Other Chinese tech giants, resembling Alibaba Group Holding, have been cautious with their involvement with NFTs, with Chinese platforms normally substituting the NFT label with the time period “digital collectibles,” which isn’t essentially related to cryptocurrencies.

The authorities within the mainland has been going after crypto-related actions, together with funding, buying and selling, and mining. It has highlighted issues that hypothesis may result in bubbles within the digital belongings market, whereas selling the state-issued digital yuan. According to current rules, the tokens may be bought solely with Chinese fiat and by no means resold.

Do you count on different NFT platforms in China to close down within the close to future? Tell us within the feedback part under.

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