China’s Tencent Shuts Down The NFT Platform As Per Government Directive

Chinese tech giant Tencent decided to shut down its NFT trading platform not long after the government made it illegal for private transactions after a purchase.

Tencent Shuts Down the NFT Platform

One of Tencent’s NFT platforms was shut down on July 1, according to a report from local media, and the other is battling to stay afloat.

The business transferred senior executives in charge of running the NFT platform in May, according to the article, and by the first week of July had completely removed the digital collectible area from its Tencent News app.

The fundamental cause of the decline in sales and the entire shutdown of Tencent’s digital collectable platform is being attributed to the government’s ban on customers selling their NFTs in subsequent private transactions. Furthermore, the absence of a secondary market makes it much more difficult to profit from these digital treasures.

NFT trading in the shadows is still active

While bitcoin sales are prohibited in China, NFTs are not completely outlawed. Although huge digital companies like Alibaba and Tencent are unable to do so, citizens continue to sell their NFTs in the black market secondary markets.

For example, despite successive government cautions against NFTs, the number of NFT platforms in the nation has increased more than five times in the past four months.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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