Chinese internet giant Tencent Holdings’ (0700. HK) non-fungible token (NFT) platform Huanhe will no longer release digital collectibles to the public, as regulatory scrutiny of NFTs mounts in the country.
The Shenzhen-based company said that Huanhe, officially launched early last August, will no longer release new NFTs to users. But the company said that owners of existing collectibles will still be able to hold, display or request a refund for their possessions.
“Based on the company’s consideration to focus on its core strategy; Huanhe is making adjustments to its business,” Tencent said in a statement.
Huanhe is one of the biggest NFT platforms in China, with new collectibles often sold out instantly upon launch.
The move marks a major retreat by Tencent from the NFT market; which has come under increased scrutiny from Chinese regulators.