Nfts
U.S. Treasury says regulators should consider NFT guidelines, given fraud risks By Reuters
NEW YORK (Reuters) – The U.S. Treasury Department said on Wednesday that regulators should consider new guidance or rules to reduce financial risks related to non-fungible tokens, or NFTs, a type of digital asset it deems very prone to fraud.
WHY IT IS IMPORTANT
NFTs, images, videos, music or texts based on the blockchain, have gained popularity during the coronavirus pandemic. These assets are highly susceptible to fraudsters and can be used to launder illicit funds, the Treasury Department said in a report released Wednesday.
Still, other sectors — including other digital assets — pose greater illicit financing risks, so regulating NFTs should not trump other priorities, he said.
THE CONTEXT
US regulators are seeking greater control over digital asset markets.
KEY QUOTE
“The NFT market is particularly vulnerable to fraud and scams,” the Treasury Department said.