- Tencent has stopped the further sale of NFTs on its NFT marketplace platform Hunahe.
- The users can hold, display or request a refund for the digital tokens on the platform.
- The company has taken this step amid rising regulatory scrutiny over NFTs in China.
Chinese tech giant Tencent Holdings’ will no longer release new digital tokens to the public.
The company said on Tuesday that it had stopped the further sale of NFTs on its NFT platform, Hunahe, as it is currently focusing on core strategies and expansion of the company.
The Shenzhen-based company also mentioned that the NFT marketplace app will still remain functional. Existing users can “display, download, and share” their NFTs on the platform. Users can also request a refund for their digital tokens.
In its official statement, as quoted by Reuters, Tencent said,
Based on the company’s consideration to focus on its core strategy, Huanhe is making adjustments to its business.
Tencent Holdings launched Hunahe last year in August. The NFT platform quickly rose to become one of the leading NFT platforms in China. Credit to its popularity, the new collectibles released on the platform were immediately sold out.
The major move by one of the tech giants in China is witness to the rising regulatory constraints in the country over the NFTs. Last year, China banned cryptocurrency trading, mining, and related activities. The government has been issuing constant warnings against NFTs.
The first news about the potential shutdown of Hunahe came to light last month. According to the company’s internal documents, it had already notified its junior managers of a layoff.
However, the company has clarified its stand, saying they are currently looking to expand the NFT platform overseas. Tencent is not looking to lay off or shut down Hunahe completely but rather revamp it as a global NFT platform.