Back in September 2021, the People's Bank of China banned all cryptocurrency transactions. The party's official website stated that the government will no longer support the concept of cryptocurrencies because the digital asset market was facilitating financial crimes as well as posing a growing risk to China's financial system, given it is highly speculative. Since then, the country's government has been quite reluctant to exercise the concept of digital assets in the national economic and financial markets. The recent victim of this has been Tencent, China's largest internet company.
Tencent recently shut down its NFT platform due to 'slow sales' on July 1, while another one of its virtual asset domains continues to remain afloat. Reports state that the wind-down process started in May itself. Apparently, the company transferred the key executives responsible for managing the NFT platform and entirely removed the digital collectible section from its Tencent News app by the first week of July. Experts believe that the primary reason behind the slow sales is the flawed government policy that hinders buyers from selling their NFTs via private transactions after purchase and are making these NFT investments not so lucrative anymore!
NFTs gained immense attention in China earlier this year. Several Chinese tech giants like Tencent and Alibaba showed interest in them and even launched their own digital collectible platforms. But the platform soon caught the attention of the government and eventually warned investors to be aware of the frauds that accompany the NFT market.
Based on recent reports, China aims to restrict capital flight and encourage the domestic circulation of people's wealth. But these anti-crypto sentiments among Chinese policymakers are hindering the economic and financial growth of the country. China has recently been in the headlines due to its massive tech innovations. And now, it should also think about expanding the country's financial perspectives too.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.