Chinese tech giant Tencent shuts down NFT platform amid trading restrictions – Bitcoin News

China’s Tencent Holdings plans to shut down Huanhe, a non-fungible token platform, just one year after its launch. The social media giant reportedly made the decision due to the strict ban on reselling NFTs imposed by the authorities in Beijing.

Huanhe shuts down a year after launch as China curbs NFT resale

Shenzhen-based technology company Tencent is preparing to shut down NFT Earlier this week, according to a report by Chinese media outlet Jiemian, citing the South China Morning Post. The move comes amid restrictions on secondary trading of NFTs in the People’s Republic of China that are said to have hurt the platform’s business potential.

Jiemian quoted anonymous sources from Tencent but the company declined to provide an official comment on the matter. Huanhe, which issues and distributes blockchain-based digital collectibles, was launched just a year ago.

All NFTs on the app are already marked as “sold out”, although users can still visit the augmented reality art galleries. Another report, citing a different source in Tencent, from state-owned media Yicai Global, revealed that trading was halted in early July in anticipation of the crackdown.

Huanhe is developed by Tencent platform and Content Group (PCG), which was hit hard by layoffs earlier this year. If the NFT unit ends its activities, it would mark a major pullback for Tencent from the digital collectibles market, according to SCMP notes.

In June, Tencent’s social media app Wechat announced its intention to ban public accounts that facilitate secondary trading or provide guidelines for non-fungible tokens. Shortly thereafter, Tencent News stopped selling NFTs.

Other Chinese tech giants, such as Alibaba Group Holding, have been cautious in their involvement with NFTs, with Chinese platforms typically replacing the NFT designation with the term “digital holdings,” which is not necessarily associated with cryptocurrencies.

The government on the mainland has been following activities related to cryptocurrency, including investment, trading and mining. He highlighted concerns that speculation could lead to bubbles in the digital asset market, with the promotion of the state-issued digital yuan. According to the current regulations, tokens can only be purchased with Chinese securities and can never be resold.

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Alibaba, ban, China, Chinese, Crackdown, digital holdings, Huanhe, nft, nft platform, NFTs, non-fungible tokens, restrictions, sell, tencent, tokens, trading, WeChat

Do you expect to close other NFT platforms in China in the near future? Tell us in the comments section below.

Lubomir Tasev

Lubomir Tasev is an Eastern European journalist and technology expert, who likes to quote Hitchens: “Being a writer is what I am, not what I do.” Besides crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

photo credits: Shutterstock, Pixabay, Wikicommons

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