Tencent stops sales on its NFT platform Huanhe a year after launch as scrutiny mounts

Folks go to a Tencent sales space on the 2021 China Worldwide Truthful for Commerce in Companies (CIFTIS) in Beijing, China September 3, 2021. REUTERS/Florence Lo

HONG KONG, Aug 16 (Reuters) – Chinese language web big Tencent Holdings’ (0700.HK) non-fungible token (NFT) platform Huanhe will not launch digital collectibles to the general public, it mentioned on Tuesday, as regulatory scrutiny of NFTs mounts within the nation.

The Shenzhen-based firm mentioned that Huanhe, formally launched early final August, will not launch new NFTs to customers from Tuesday. However the firm mentioned that house owners of present collectibles will nonetheless have the ability to maintain, show or request a refund for his or her possessions.

“Based mostly on the corporate’s consideration to deal with its core technique, Huanhe is making changes to its enterprise,” Tencent mentioned in an announcement.

Huanhe is likely one of the greatest NFT platforms in China, with new collectibles typically offered out immediately upon launch.

The transfer marks a significant retreat by Tencent from the NFT market, which has come beneath elevated scrutiny from Chinese language regulators. Digital collectibles within the type of NFTs have develop into standard around the globe in recent times, largely due to an energetic if not extremely speculative secondary market.

After state media repeatedly highlighted points round NFT hypothesis within the nation, tech giants together with Tencent and Ant Group in June signed a pact to cease the secondary buying and selling of digital collectibles and “self-regulate” their actions available in the market. learn extra

The potential shutdown of Huanhe was first reported by Chinese language media final month. In its assertion on Tuesday, Tencent didn’t elaborate on what is going to occur to the Huanhe model.

Chinese language tech giants have trodden rigorously with their NFT platforms inside mainland China. Most home platforms principally keep away from the wording NFT, opting to explain them as “digital collectibles” as an alternative in a bid to distance them from cryptocurrencies, that are banned in China.

Reporting by Josh Ye; Modifying by Kenneth Maxwell

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