Chinese language tech large, 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 now not launch NFTs beginning Tuesday, August 16. Nevertheless, present NFT holders will be capable of maintain, show, or request a refund for his or her NFTs. Right here’s all it is advisable know in regards to 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 deal with its core technique, Huanhe is making changes to its enterprise,” Tencent stated in a press release, based on 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 studies on NFT hypothesis, tech giants akin to Tencent and Ant Group agreed to stop the secondary trading of NFTs.
The transfer was aimed toward “self-regulating” their actions. WeChat, an immediate messaging app from Tencent, additionally banned crypto and NFT-related accounts the identical month. Basically, 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. Nevertheless, 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 up to now. Nevertheless, owing to the crypto ban within the nation, Chinese language tech corporations have been cautious about their NFT platforms. As a matter of truth, most platforms discuss with NFTs as “digital collectibles” to keep away from scrutiny from regulators.