Tencent Holdings' non-fungible token (NFT) platform Huanhe will no longer distribute digital collectibles to the public, the company announced on Tuesday, as regulatory scrutiny of NFTs grows in China.
Huanhe, which was officially launched in early August, would no longer be releasing new NFTs to consumers as of Tuesday, according to the Shenzhen-based startup. However, owners of existing collectibles will be free to keep, display, or request a refund for their items, according to the firm.
"Based on the company's consideration to focus on its core strategy, Huanhe is making adjustments to its business," Tencent said in a statement.
Huanhe is one of China's largest NFT marketplaces, with new items frequently selling out immediately upon release.
Tencent has taken a significant step back from the NFT sector, which has come under heightened scrutiny from Chinese regulators. Digital collectibles in the form of NFTs have grown in popularity in recent years, thanks in large part to an active, if not highly speculative, secondary market.
After state media frequently raised concerns over NFT speculation in the country, tech behemoths such as Tencent and Ant Group agreed in June to halt secondary trading of digital collectibles and "self-regulate" their market activities.
Last month, Chinese media reported on Huanhe's impending shutdown. Tencent did not explain on what will happen to the Huanhe brand in its statement on Tuesday.
Chinese internet behemoths have treaded gingerly with their NFT platforms on the Chinese mainland. Most domestic platforms shun the term "NFT," instead referring to them as "digital collectibles" to distinguish them from cryptocurrencies, which are illegal in China.
(Source:www.finanicalpost.com)
Huanhe, which was officially launched in early August, would no longer be releasing new NFTs to consumers as of Tuesday, according to the Shenzhen-based startup. However, owners of existing collectibles will be free to keep, display, or request a refund for their items, according to the firm.
"Based on the company's consideration to focus on its core strategy, Huanhe is making adjustments to its business," Tencent said in a statement.
Huanhe is one of China's largest NFT marketplaces, with new items frequently selling out immediately upon release.
Tencent has taken a significant step back from the NFT sector, which has come under heightened scrutiny from Chinese regulators. Digital collectibles in the form of NFTs have grown in popularity in recent years, thanks in large part to an active, if not highly speculative, secondary market.
After state media frequently raised concerns over NFT speculation in the country, tech behemoths such as Tencent and Ant Group agreed in June to halt secondary trading of digital collectibles and "self-regulate" their market activities.
Last month, Chinese media reported on Huanhe's impending shutdown. Tencent did not explain on what will happen to the Huanhe brand in its statement on Tuesday.
Chinese internet behemoths have treaded gingerly with their NFT platforms on the Chinese mainland. Most domestic platforms shun the term "NFT," instead referring to them as "digital collectibles" to distinguish them from cryptocurrencies, which are illegal in China.
(Source:www.finanicalpost.com)
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