Tencent Halts NFT Sales on Its Huanhe Platform Amid Regulatory Scrutiny: Report

Users will still be able to hold, display or request a refund for their digital tokens.

AccessTimeIconAug 16, 2022 at 11:45 a.m. UTC
Updated May 11, 2023 at 6:53 p.m. UTC

Chinese tech giant Tencent will stop releasing digital collectibles on its non-fungible token (NFT) platform in light of scrutiny from regulators, according an official statement cited by Reuters.

The company's Huanhe NFT platform, which started up last August, will no longer sell NFTs starting on Tuesday, Reuters said. Customers who own NFTs, however, will still be able to hold, display or request a refund for the digital assets.

Last year, China banned cryptocurrency trading and mining, a decision that left questions over the uncategorized NFT market because of its similarities to cryptocurrencies. Shenzhen-based Tencent, whose businesses include the Weixin/WeChat messaging app as well as mobile news, games and payment systems, was forced to remove all references to NFTs on Huanhe last October after Chinese state entities warned that NFTs were being used for speculation.

"Based on the company's consideration to focus on its core strategy, Huanhe is making adjustments to its business," Tencent said in a statement, as quoted by Reuters.

Tencent didn't immediately reply to a request from CoinDesk for comment.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.