Nfts
“NFTs Are Vulnerable to Criminal Use,” US Treasury Department Risk Assessment Says, Citing Issues with Anti-Money Laundering Management Systems
May 30, 2024 8:00:00 PM
On May 30, 2024, the US Treasury Department released its first financial risk assessment report on “NFTs (Non-Fungible Tokens)”. The Treasury Department has harshly criticized platforms that manage NFTs for neglecting anti-money laundering measures, etc.
Illicit Finance Risk Assessment of Non-Fungible Tokens – Illicit-Finance-Risk-Assessment-of-Non-Fungible-Tokens.pdf
(PDF file)
US Treasury describes non-fungible tokens as ‘highly susceptible’ to use in financial crime
https://www.coindesk.com/policy/2024/05/29/us-treasury-describes-nfts-as-highly-susceptible-to-use-in-fraud-and-scams/
US Treasury Department Releases First-Ever Financial Risk Assessment Report on NFTs – NFT News Today
https://nftnewstoday.com/2024/05/30/us-treasury-department-releases-first-ever-finance-risk-assessment-report-on-nfts/
In the Treasury Department’s view, NFTs are easily used by criminals for money laundering and regulatory evasion, and the platforms that manage NFTs are unable to adequately manage these crimes . Therefore, the Treasury Department has recommended that platforms apply additional regulatory measures.
The Ministry of Finance is calling on citizens to exercise caution, not only because of the financial concerns surrounding NFTs, but also because NFTs themselves are a prime target for criminals.
According to the Ministry of Finance, fraud involving NFTs is widespread and there are also concerns about intellectual property issues, such as misrepresentation of rights and violations of copyright and trademark protections.
The Ministry of Finance used the case of North Korea as a case study, explaining how North Korea used NFTs to raise funds for its military, as well as the methods used by associated hacker groups to steal digital assets, and called for awareness of the problem. emerging risks.
In 2022, an online game advertising that you could obtain NFTs simply by playing was hacked and it was discovered that over 75 billion yen worth of virtual currency had been stolen. Subsequent investigations revealed that the mastermind was a North Korean criminal group.
NFT News Today, which covers news related to NFTs, wrote: “The Treasury Department’s release of this assessment report marks an important step in understanding and managing the risks associated with NFTs. Regulatory clarity and consumer protection are key to navigating the evolving NFT landscape. Continued collaboration between stakeholders is essential to ensure a safe and transparent NFT market. Only through awareness, education and appropriate regulation can the industry protect itself from potential risks and safety issues.