Crypto space in China had faced the worst since the authorities banned cryptocurrencies and all related operations across the region. Users of crypto assets and non-fungible tokens within the country also took hit after the decision. Although it’s been months since the ban on crypto in China yet the repercussions are witnessed often. Recently, one among the biggest NFT platforms in China belonging to Tencent – Huanhe – is reported to shut down its new NFT issuance operations.
Chinese internet giant company, Tencent Holdings, was observing the growth of the non-fungible tokens sector. The company stepped into the NFT space intending to take advantage of the ongoing boom. However, it’s been only a year since the launch of Tencent’ NFT platform Huanhe and now they have announced their backing off from digital collectible space.
According to the statement on the Huanhe app, the Huanhe NFT platform of Tencent will effectively stop issuance of non-fungible tokens from Tuesday, August 16th, 2022. NFTs are said to be the digital collectibles to comply with the crypto regulations that banned any crypto transactions. The company said that users will be offered refunds on their requests and return of digital collectibles.
Further the statement noted that all the returned digital collectibles will be destroyed. The company is set to solely focus towards their core businesses and strategies. Although the app will still be existing, it will enable existing customers of the platform to display, download and share their already owned NFTs, Huanhe added.
Following the obligations, all Chinese NFT platforms allow their users to buy new digital collectibles using only fiat money. Their party transfer is also limited for non-profit purposes only.
Huanhe is the big name when it comes to NFT platforms in China where every other new digital collectible gets sold out instantly following its launch. Despite all the success the company received during the past year, Tencent’s retreat from the space reflects the growing interference of regulators following the ban.
For a while now, Chinese state media have consistently raised the concerns regarding the NFT ຂອງ and speculation of digital collectibles within the country. Tencent and Ant Group like tech giants took it as a signal and went on to sign an agreement. According to the agreement, they have stopped digital collectibles’ secondary trading and also decided to self-regulate their activities.
Source: https://www.thecoinrepublic.com/2022/08/16/tencents-huanhe-nft-platform-shutting-down-operations-citing-uncertain-regulations/