Nfts
US Treasury warns of high risks of fraud and scams in the NFT market
US Treasury warns of high risks of fraud and scams in the NFT market
THE US Treasury Department identified NFT as “highly susceptible to fraud and scams” in its latest assessment of risks linked to illicit financing.
Published on May 29, the report describes how NFTs can be used by criminals to launder money from illegal activities, highlighting the potential of NFTs to facilitate money laundering due to their unique and high-value nature. value.
This report marks Treasury’s first detailed examination of NFTs in the context of financial crime.
US Treasury recommends tougher regulations
“The report determines that illicit actors may use NFTs to launder the underlying proceeds of crime, often in combination with other methods to conceal the illicit source of the proceeds of crime,” Treasury said.
The Treasury also noted that many NFT platforms do not have adequate controls to prevent money laundering and sanctions evasion and recommends that stricter regulations be applied to NFTs and the platforms that trade them to mitigate these risks.
This assessment contrasts with a March US Government Study, which found that no new legislation was needed to resolve copyright and trademark issues in the NFT space. The Treasury’s current assessment, however, focuses on financial vulnerabilities.
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