Tencent’s

Tencent’s

NFT PLATFORM HUANHE SHUTS DOWN AS REGULATIONS TIGHTEN IN CHINA

Tencent Holdings, a Chinese tech giant, closed off its NFT platform Huanhe after one year of operation. China’s strict rule against NFTs forced the company to shut down the platform to avoid regulatory scrutiny, Reuters reports.

In China, NFTs aren’t addressed as NFTs; instead, they are called digital collectibles. China has extreme views about NFTs or non-fungible tokens, so many tech giants have adopted the alternate name, digital collectibles.

Tencent Holdings on Tuesday announced they will be shutting down Huanhe and NFTs officially. The platform was launched just last year in August but now the company has no choice but to withdraw all its NFTs.

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“Based on the company's consideration to focus on its core strategy, Huanhe is making adjustments to its business,”  Tencent said.

According to Tencent, people who already own digital collectibles from Huanhe will still hold, exhibit, or request a refund but they won’t be able to trade NFTs on the platform. Tencent has been quite careful with launching NFTs in mainland China. Previously, it also signed an agreement with other tech companies to self-regulate and disallow secondary sales of NFTs.

The rumors of Huanhe shutting down had already surfaced after Chinese regulators began tightening the regulations against NFTs. Today, Tencent finally closed off the platform officially. Since China is home to many leading global tech companies, the struggle of allowing NFTs and crypto have become a challenge for them.

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