Money laundering
NFTs, as with other blockchain securities and traditional art sales, can potentially be utilized for money laundering.[95] Auction platforms for NFT sales may potentially face regulatory pressure for compliance with existing anti-money laundering legislation. Gou Wenjun, the director of the Anti-Money Laundering Monitoring and Analysis Centre for the People's Bank of China, has expressed that NFTs could "easily become money-laundering tools." Gou elaborated that there is an increasing unlawful exploitation of various new cryptographic technologies, and that illicit actors often self-identify as innovators of the financial technology sector.[96]
A February 2022 study from the United States Treasury assessed that there was "some evidence of money laundering risk in the high-value art market," including through "the emerging digital art market, such as the use of non-fungible tokens (NFTs)."[97] The study considered how NFT transactions may be a simpler option for laundering money through art by avoiding the transportation or insurance complications in trading physical art. Several NFT exchanges were labeled as possible virtual asset service providers that may be subject to Financial Crimes Enforcement Network regulations.
= new reply since forum marked as read
