Non-fungible token (NFT) marketplace Yucang Digital Collectibles announced that it is buying back assets sold on its platform due to lack of regulatory clarity.
See related article: NFTs in China must be reviewed: China media watchdog
Fast facts
- The marketplace said operations will continue, but sales and transfers of digital collectibles will be frozen and new user registrations will not be accepted.
- The marketplace said a lack of regulatory clarity presents risks to local NFT businesses.
- “Digital collectibles” is a phrase used by Chinese companies to avoid reference to NFTs due to state media denouncing NFT speculation.
- According to posts from Yucang’s official WeChat account, the platform was set up two and a half months ago, and has only sold one batch of digital collectibles since then.
- Yucang is built on the Hundsun Chain, which is built by Shanghai Stock Exchange-listed firm Hundsun and approved by the local cyberspace watchdog.
See related article: Chinese Communist Party paper to “develop” NFTs