Chinese tech giant <a href="https://twitter.com/TencentGlobal" target="_blank" rel="nofollow noopener">Tencent</a> decided to shut down its NFT trading platform not long after the government made it illegal for private transactions after a purchase.
<h2>Tencent Shutters NFT Platform</h2>
According to a report from local media, Tencent shut down one of its NFT platforms on July 1 while the other one is struggling to survive.

The report highlighted that the shutdown process began back in May with the company transferring key executives responsible for managing the NFT platform and fully removing the digital collectible section from its Tencent News app by July's first week.

https://twitter.com/WuBlockchain/status/1547468687183351808

The primary reason for the slowdown in sales and the complete closure of Tencent's digital collectible platform is being blamed on the country's government policy that prohibits buyers from selling their <a href="https://www.cryptoknowmics.com/news/flipkart-to-airdrop-nfts-for-nothing-phone-1-pre-bookers-via-firedrops/" target="_blank" rel="noopener">NFTs</a> in private transactions after purchase. Additionally, the lack of a secondary market further makes it impossible to make a profit on these digital collectibles.
<h2>Underground NFT Trading Remains Afloat</h2>
While Chinese authorities have banned cryptocurrency sales, there is no such outright ban against NFTs. Citizens still sell their NFTs in the underground secondary markets but large tech firms such as Alibaba and Tencent can't afford to do so.

For instance, despite subsequent warnings from the government against NFTs, the number of NFT platforms in the country has grown over five times in four months.

China's Tencent Shuts Down NFT Platform Following Govt Policy

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

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

China's Tencent Shuts Down NFT Platform Following Govt Policy

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