As a result of government regulation, Tencent has decided to shut down its NFT platform
According to Blue Whale Finance, Tencent News disbanded its NFT trading function not long after the Chinese government made it illegal for private businesses to conduct trades after a purchase.
One of Tencent’s NFT platforms was halted as of July 1, while the company’s other platform is now fighting for its life. According to a report in a regional newspaper, the process of scaling back for the same started in May of this year.
In the last week of May, Tencent reassigned key executives responsible for administering the NFT platform and fully eliminated the digital collectible segment from its Tencent News app by July’s first week.
Government legislation that prevents customers from reselling their NFTs in private transactions after purchase is being blamed for the slowdown in sales of Tencent’s digital collectible platform and its eventual shutdown. Because there is no secondary market for these digital treasures, there is no way to profit from them.
Tencent pledged earlier this month to put an end to the secondary market for digital collectibles. JD.com, Baidu, and Ant Group, among other Chinese IT heavyweights, have all pledged their support.
Chinese authorities have banned cryptocurrency sales, but NFT trading is still permitted. Companies in the nation have rebranded the assets as digital collectibles as a result of the negative connotation.
No matter how serious the government has been about cracking down on cryptocurrency trading and mining in China, dealers have always found a way around it.
For instance, China’s proportion of Bitcoin miners decreased from 60% to 0% when the government banned crypto mining last year.
In spite of the government’s severe controls, it seems that Chinese miners have discovered a method to climb back up to the second rank. Fivefold increase in the number of NFT platforms in only four months.