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

2 months ago 34

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

China’s Tencent Holdings plans to unopen down its non-fungible token (NFT) level Huanhe lone a twelvemonth aft its launch. The societal media elephantine has reportedly made the determination due to the fact that of the strict prohibition connected the resale of NFTs imposed by the authorities successful Beijing.

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

Shenzhen-headquartered exertion conglomerate Tencent is preparing to unopen down its NFT level arsenic aboriginal arsenic this week, according to a study by Chinese media outlet Jiemian, quoted by the South China Morning Post. The determination comes amid restrictions connected the secondary trading of NFTs successful the People’s Republic which are said to person wounded the platform’s concern potential.

Jiemian is citing unidentified sources from Tencent but the institution has refrained from providing an authoritative remark connected the matter. Huanhe, which issues and distributes blockchain-based integer collectibles, was launched conscionable a twelvemonth ago.

All NFTs connected the app are already marked arsenic “sold out,” though users tin inactive sojourn augmented world creation exhibitions. Another study quoting a antithetic Tencent source, from the state-owned media Yicai Global, reveals that trading halted successful aboriginal July successful anticipation of a crackdown.

Huanhe was developed by Tencent’s Platform and Content Group (PCG), which was deed hard by lay-offs earlier this year. If the NFT portion terminates activities, this would people a large retreat by Tencent from the marketplace of integer collectibles, the SCMP notes.

In June, Tencent’s societal media app Wechat announced its intentions to prohibit nationalist accounts facilitating secondary trading oregon offering guidance for non-fungible tokens. A small later, the Tencent News app stopped selling NFTs.

Other Chinese tech giants, specified arsenic Alibaba Group Holding, person been cautious with their engagement with NFTs, with Chinese platforms usually substituting the NFT statement with the word “digital collectibles,” which isn’t needfully associated with cryptocurrencies.

The authorities successful the mainland has been going aft crypto-related activities, including investment, trading, and mining. It has highlighted concerns that speculation could pb to bubbles successful the integer assets market, portion promoting the state-issued digital yuan. According to existing regulations, the tokens tin beryllium purchased lone with Chinese fiat and ne'er resold.

Do you expect different NFT platforms successful China to unopen down successful the adjacent future? Tell america successful the comments conception below.

Lubomir Tassev

Lubomir Tassev is simply a writer from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, alternatively than what I do.” Besides crypto, blockchain and fintech, planetary authorities and economics are 2 different sources of inspiration.

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