Chinese language tech big, Tencent will cease the gross sales of digital collectibles on its NFT platform, Huanhe amid rising regulatory scrutiny. Huanhe, which was launched in August final yr, will not launch NFTs beginning Tuesday, August 16. Nonetheless, present NFT holders will be capable to maintain, show, or request a refund for his or her NFTs. Right here’s all it’s essential know concerning the newest updates from Tencent’s Huanhe NFT platform.
Why is Tencent stopping its NFT gross sales?
“Primarily based on the corporate’s consideration to concentrate on its core technique, Huanhe is making changes to its enterprise,” Tencent mentioned in an announcement, in accordance with Reuters.
Reportedly, the choice comes amid rising scrutiny from Chinese language regulators. Final yr, China introduced a ban on crypto, resulting in uncertainty across the but uncategorized NFT sector. Later, in June this yr, amid state media experiences on NFT hypothesis, tech giants similar to Tencent and Ant Group agreed to cease the secondary buying and selling of NFTs.
The transfer was geared toward “self-regulating” their actions. WeChat, an immediate messaging app from Tencent, additionally banned crypto and NFT-related accounts the identical month. Primarily, public WeChat accounts concerned in “the issuance, buying and selling and financing of crypto and NFTs” had been topic to the ban.
The truth is, the Chinese language media first hinted on the potential closure of the Tencent NFT platform final month. Nonetheless, in its assertion, the agency didn’t specify the way forward for Huanhe.
China has a haphazard relationship with crypto and NFTs and has launched its personal centralized digital foreign money previously. Nonetheless, owing to the crypto ban within the nation, Chinese language tech firms have been cautious about their NFT platforms. As a matter of reality, most platforms consult with NFTs as “digital collectibles” to keep away from scrutiny from regulators.
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