Tencent Holdings has stopped sales of its NFT platform to the public, the company said on Tuesday.
Haunhe was officially launched by the Chinese Internet Giant in August 2021. However, due to a shift in business strategy, Tencent will be shutting down the service. “Based on the company’s consideration to focus on its core strategy, Huanhe is making adjustments to its business,” Tencent Holdings said in a statement.
Fortunately for current holders in Huanhe, the company says that owners of existing collectibles will still be able to hold, display or request a refund for their possessions. However, selling of the NFTs will cease starting today.
Huanhe became one of the biggest NFT platforms in China upon its launch last year. However, regulators in China have become increasingly strict over NFTs, over their similarities to already banned cryptocurrency. Tencent Holdings did not elaborate on closing the NFT sales service.
Tencent and Ant Group signed a pact in June to stop the secondary trading of digital collectibles and “self-regulate” their activities in the market. The rumors of Huanhe shutting down were soon to follow in Chinese media in July. Users even use the phrase “NFT” with extra caution in the country, often opting to describe them as “digitial collectibiles.”