Chinese Tencent closed the NFT platform due to tightening legislation – Bits Media

Large Chinese web company Tencent, incurred losses as a result of a change in the rules for regulating inconsistent tokens, Closed one of her NFT trading platforms.

The Internet giant explained the disconnection of the site with a decrease in sales, which The regressive monetary policy and the persecution of trade NFT from the part of the Government of China contributed to the regressive monetary policy.

The process of closing the site was completed over the past month. The company has another NFT platform remained, who is trying to keep afloat with all his might. The company has translated key executives, Responsible for NFT platform management, The section of digital collection objects from its Tencent News application completely removed to another job and completely removed.

The main reason for the slowdown in sales and the final closure of the Tencent digital collectible collectible banner is related to the direct legislative prohibition of customers to sell their NFT in private transactions after purchase. The absence of a secondary market kills any chances of making a profit from these digital collecting items, The market participants are lamented.

At the beginning of this year, NFT gained great popularity in China after several technological giants, such as Tencent and Alibaba, showed interest and even launched their own platforms for collection tokens. However, with the growth of popularity, NFT attracted the attention of the Government and the Communist Party of the PRC. The authorities warned investors, that they should be afraid of fraud, associated with NFT. Since March, the main owners of social networks, Weibo и Wechat, We started deleting accounts, related to digital collectible platforms, Fearing repression from the government. In June, Alibaba launched a NFT trading platform, but soon deleted all the mention of her from the Internet.