China avoids NFT market

The giant Chinese internet and technology company, Tencent has shut down Its NFT marketplace operation. Although there are no official reports, many experts believe that it was due to legal reasons related to China's state policy. NFTS themselves are not banned in the country, but many directives make their possession and operation difficult.

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Tencent NFT Marketplace was suddenly shut down

According to local reports, Tencent began to slowly withdraw its NFTS back in May. All the marketplace executives were moved to other projects. In June, several technology giants, including Tencent and other companies, signed an agreement to withdraw from the NFT secondary markets. In addition, the Chinese media reported that companies will regulate themselves and their existing activities’ in this particular space.

Does China allow NFTs?

The answer is both yes and no. For now, NFTs are not illegal in China, as is the case with cryptocurrencies. But China warns investors about the risk associated with trading NFTs. In the beginning many people thought that this year would be “the year of the NFT” in China. However,  the situation has changed. Large companies, including Tencent, are taking their hands off of this industry. It is not certain whether they are doing this because they do not want to "undermine" the government or because they are preparing for future laws to be issued.

It makes sense for Tencent to close its marketplace because new laws in China,  severely restrict further sales of NFTs. Additionally, they make the whole process very complex for those who would like to benefit from their purchase.

Source: nftevening.com

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