Fun

Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions

News Feed - 2022-07-23 05:07:32

Chinese Tech Giant Tencent to Shut Down NFT Platform Amid Trading Restrictions


China’s Tencent Holdings plans to shut down its non-fungible token (NFT) platform Huanhe only a year after its launch. The social media giant has reportedly made the decision because of the strict ban on the resale of NFTs imposed by the authorities in Beijing. Huanhe to Close Down a Year After Launch as China Curbs NFT reselling


Shenzhen-headquartered technology conglomerate Tencent is preparing to shut down its NFT platform as early as this week, according to a report by Chinese media outlet Jiemian, quoted by the South China Morning Post. The move comes amid restrictions on the secondary trading of NFTs in the People’s Republic which are said to have hurt the platform’s business potential.


Jiemian is citing unidentified sources from Tencent but the company has refrained from providing an official comment on the matter. Huanhe, which issues and distributes blockchain-based digital collectibles, was launched just a year ago.


All NFTs on the app are already marked as “sold out,” although users can still visit augmented reality art exhibitions. Another report quoting a different Tencent source, from the state-owned media Yicai Global, reveals that trading halted in early July in anticipation of a crackdown.


Huanhe was developed by Tencent’s Platform and Content Group (PCG), which was hit hard by lay-offs earlier this year. If the NFT unit terminates activities, this would mark a major retreat by Tencent from the market of digital collectibles, the SCMP notes.


In June, Tencent’s social media app Wechat announced its intentions to prohibit public accounts facilitating secondary trading or offering guidance for non-fungible tokens. A little later, the Tencent News app stopped selling NFTs.


Other Chinese tech giants, such as Alibaba Group Holding, have been careful with their involvement with NFTs, with Chinese platforms usually substituting the NFT label with the term “digital collectibles,” which isn’t necessarily associated with cryptocurrencies.


The government in the mainland has been going after crypto-related activities, including investment, trading, and mining. It has highlighted concerns that speculation could lead to bubbles in the digital assets market, while promoting the state-issued digital yuan. According to existing regulations, the tokens can be purchased only with Chinese fiat and never resold. Tags in this story Alibaba, ban, China, chinese, Crackdown, Digital Collectibles, Huanhe, nft, nft platform, NFTs, Non-fungible tokens, restrictions, Selling, tencent, Tokens, trading, WeChat


Do you expect other NFT platforms in China to shut down in the near future? Tell us in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Three Arrows Capital Founders Speak After Filing Bankruptcy, Exec Says the "Whole Situation Is Regrettable" NEWS | 9 hours ago Report: Blockchain.com Cuts Staff by 25%, Executive Salaries Reduced NEWS | 1 day ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSEC Slaps Former Coinbase Manager With Insider Trading Charges — Identifies 9 Crypto Tokens as Securities Next articleSocial Media Users Deride China’s Reported Use of Military Tanks to Intimidate Protesting Bank Customers Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand"


Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

Director of Listed Chinese Company Embezzles $8 Million, Uses Funds to Purchase Bitcoin Mining Rigs
Director of Listed Chinese Company Embezzles $8 Million, Uses Funds to Purchase Bitcoin Mining Rigs A Chinese prosecutor is reported to have given a thumbs up to the arrest of a li
Helen Partz13 hours agoBankless controversy forces founders to burn tokens and separate from DAOThe co-founders of crypto media Bankless are seeking to separate their brand from BanklessDAO two years after its launch.203
Human Readability and Privacy: BCH Can Be Sent by Email With Tips Tool, No Usernames Required
Human Readability and Privacy: BCH Can Be Sent by Email With Tips Tool, No Usernames Required Tips.Bitcoin.com allows users of crypto to tip BCH to friends and family via email a
US Bank Outflows and Concerns Mount: 11 Banks Bail Out First Republic Bank From Collapse
US Bank Outflows and Concerns Mount: 11 Banks Bail Out First Republic Bank From Collapse After the fall of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank (SNBY), Fi
Lawsuit Claims US Labor Department’s Crypto Guidance Is Unlawful
Lawsuit Claims US Labor Department"s Crypto Guidance Is Unlawful The U.S. Department of Labor has been sued by a 401(k) plan administrator over its cryptocurrency guidance. “
Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes
Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes Reports indicate that the world’s largest cryptocurrency exchange by trade volume, Binan
Bitcoin funding rates stay cool while BTC price coils beneath $71K
William Suberg10 hours agoBitcoin funding rates stay cool while BTC price coils beneath $71KBitcoin bulls escape a fresh inlation-induced burn as U.S. PPI figures drop faster than expected and BTC price action challenges
Globant Survey: Most Gamers Believe Metaverse Will Change the Gaming Industry Positively
Globant Survey: Most Gamers Believe Metaverse Will Change the Gaming Industry Positively A survey published by Globant, a software development firm, and Yougov, found that most gam
Bitcoin Price Fall Increases Buying Momentum, Pushes Exchange BTC Balances To 6-Year Lows
Este artículo también está disponible en español. Following a major price decline in Bitcoin (BTC), market sentiment droppedback to strong levels of fear, indicating that
Russia Gears Up to Regulate NFTs Through Legislative Amendments
Russia Gears Up to Regulate NFTs Through Legislative Amendments Authorities in Russia are preparing a number of changes to existing laws in order to adopt rules for the country
Crypto Exchange Bitfront Shuts Down Amid Industry Challenges
Crypto Exchange Bitfront Shuts Down Amid Industry Challenges Cryptocurrency exchange Bitfront has announced its intention to cease operations in the coming months, citing challenge
Analyst Predicts 50% “Moonshot” For XRP Price If This Line Breaks
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu