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China’s Tencent Holdings plans to shut down its non-vulnerable token (NFT) platform, HuanHe, a year after its launch. The social media giant is said to have made the decision due to a strict ban on the resale of NFTs imposed by Beijing authorities.
As China bans NFT reselling, Huanhei is about to shut down a year after its launch.
Shenzhen-headquartered technology conglomerate Tencent is preparing to shut down its NFT platform earlier this week, according to a report by Chinese media outlet Jimian, reported by the South China Morning Post. The move comes amid restrictions on secondary trading of NFTs in the People’s Republic, which are said to have affected the trading capacity of the platform.
Jimian is citing unnamed sources from Tencent, but the company declined to make an official comment on the matter. Huanhe, which issues and distributes blockchain-based digital collections, was launched a year ago.
Although users can still visit augmented reality art exhibits, all NFTs on the app are marked “sold out.” Citing another Tencent source, state media Yikai Global reported that trading was halted in early July in anticipation of possible action.
Huanhe was developed by Tencent’s Platform and Content Group (PCG) and was hit hard by layoffs earlier this year. If the NFT segment halts activities, this will mark a major retreat by Tencent from the digital collections market, SCMP notes.
In June, Tencent’s social media app WeChat announced its intention to ban public accounts that facilitate secondary trading, or issue guidelines for tokens that do not. A little later, the Tencent News app stopped selling NFTs.
Other Chinese tech giants, such as Alibaba Group Holding, have been cautious about their involvement with NFTs, with Chinese platforms replacing the NFT label with the term “digital collectibles,” which is not necessarily related to cryptocurrencies.
The government in the mainland has been conducting crypto-related activities including investment, trading and mining. Speculation over the introduction of a government-issued digital yuan has highlighted concerns that it could lead to bubbles in the digital asset market. According to existing regulations, the tokens can only be bought and resold in Chinese fiat.
Do you expect other NFT platforms in China to shut down in the near future? Tell us in the comments section below.
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