(Yicai Global) March 17 -- Tencent Holding's said it will close its digital collectibles platform Huanhe on June 30, as the clamor for non-fungible tokens fades.

Huanhe users should apply for refunds before the platform is shut because they will not be able to check, download, display, or share their NFTs afterward, Tencent said recently. Users who decide not to apply for refunds will have to remember their NFT's identification if they wish to check them on Blockchain Explorer, it added.

Tencent said last August that it would withdraw from the NFT scene, and Huanhe, launched the year previously, would stop adding new products to its shelves to reduce regulatory risks.

As the chaotic digital collectible market has attracted the attention of Chinese regulators, Shenzhen-based Tencent, which has always been very cautious, chose to pull out, Shanghai Securities News reported today, citing industry insiders.

China's top market watchdog recently said NFT-related consumer complaints had surged last year, as supervision becomes more of a challenge. The State Administration for Market Regulation received 59,700 complaints, mainly concerning delivery and refund failures, malicious price inflation, and arbitrary blocking of buyers' accounts, a 300-fold increase from 198 in 2021.

“Whether digital collectibles can be traded has been a topic of debate in the industry,” said an entrepreneur in the field. If they cannot be traded, they are ordinary cultural products, but if they can, they may generate huge financial risks, the person added.

Facebook's parent company Meta recently announced tat it would cut support for digital collectibles and NFTs on its platform. “We are phasing out NFTs and focusing on supporting creators, individuals, and businesses in other ways,” Meta's fintech head said.

Editor: Futura Costaglione