US Treasury Warns NFTs May Present New Illicit Finance Risks – Bitcoin News
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The U.S. treasury division has warned that non-fungible tokens (NFTs) could current new illicit finance dangers. According to trade estimates, the NFT market might attain $35 billion in 2022 and greater than $80 billion by 2025.
NFTs May Present Illicit Finance Risks
The U.S. Department of the Treasury introduced Friday the discharge of a “study on illicit finance in the high-value art market.” The research was mandated by Congress within the Anti-Money Laundering Act of 2020.
“This study examined art market participants and sectors of the high-value art market that may present money laundering and terrorist financing risks to the U.S. financial system,” the Treasury wrote, including:
The rising digital artwork market, equivalent to the usage of non-fungible tokens (NFTs), could current new dangers, relying on the construction and market incentives.
In order to fight the dangers, the research recommends a number of choices, together with updating coaching for legislation and customs enforcement, enhancing personal sector info sharing, and making use of anti-money laundering and countering terrorism financing necessities to sure contributors within the artwork market.
According to Dappradar, NFT gross sales quantity totaled $24.9 billion in 2021, in comparison with $94.9 million within the earlier 12 months. Jefferies’ analysts have estimated that the marketplace for NFTs might attain $35 billion in 2022 and greater than $80 billion by 2025.
The rising recognition of NFTs has attracted scammers and brought about considerations amongst regulators.
“Scams promising big returns on cryptocurrencies and NFTs are flooding the Internet,” T. Ok. Keen, administrator for the Division of Financial Regulation of the U.S. state of Oregon, warned in January. “Investors wanting to purchase cryptocurrencies and NFTs should do their homework to make sure they fully understand these investments and their risks before getting involved.”
What do you consider the Treasury’s warning about NFTs? Let us know within the feedback part beneath.
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