Chinese tech giant, Tencent will stop the sales of digital collectibles on its NFT platform, Huanhe amid growing regulatory scrutiny. Huanhe, which was launched in August last year, will no longer release NFTs starting Tuesday, August 16. However, current NFT holders will be able to hold, display, or request a refund for their NFTs. Here’s all you need to know about the latest updates from Tencent’s Huanhe NFT platform.
Why is Tencent stopping its NFT sales?
“Based on the company’s consideration to focus on its core strategy, Huanhe is making adjustments to its business,” Tencent said in a statement, according to Reuters.
Reportedly, the decision comes amid growing scrutiny from Chinese regulators. Last year, China announced a ban on crypto, leading to uncertainty around the yet uncategorized NFT sector. Later, in June this year, amid state media reports on NFT speculation, tech giants such as Tencent and Ant Group agreed to stop the secondary trading of NFTs.
The move was aimed at “self-regulating” their activities. WeChat, an instant messaging app from Tencent, also banned crypto and NFT-related accounts the same month. Essentially, public WeChat accounts involved in “the issuance, trading and financing of crypto and NFTs” were subject to the ban.
In fact, the Chinese media first hinted at the potential closure of the Tencent NFT platform last month. However, in its statement, the firm did not specify the future of Huanhe.
China has a haphazard relationship with crypto and NFTs and has released its own centralized digital currency in the past. However, owing to the crypto ban in the country, Chinese tech companies have been cautious about their NFT platforms. As a matter of fact, most platforms refer to NFTs as “digital collectibles” to avoid scrutiny from regulators.