Tencent lays off staff at NFT unit as Chinese regulators step up scrutiny

Tencent lays off staff at NFT unit as Chinese regulators step up scrutiny

REUTERS/Aly Song

Tencent Holdings Ltd. is laying off staff at its non-fungible token (NFT) purchase and collection platform Huanhe, sources close to the Chinese internet giant told Caixin, amid intensified regulatory scrutiny over transactions in the tokens that aim to provide proof of ownership of digital assets such as works of art.

Huanhe, which has only been operating since August 2021, is also adjusting its development strategy to avoid regulatory risks, the sources said, although Tencent is still pursuing its plan to roll out an international version of Huanhe, other sources familiar with the matter said.

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