Almost instantaneous transfer of non-fungible tokens around the world makes this sector prone to illegal activity
The US Department of the Treasury has published a report with the results of a study of the possibility of money laundering and terrorist financing using non-fungible tokens (NFT). The document says that the ability to transfer NFT tokens almost instantly around the world makes this sector the most prone to illegal activity.
The Ministry of Finance noted that the most popular way to launder funds is the purchase and sale of NFTs by the same organization. This is necessary in order to create a transaction record in the blockchain. After that, the organization sells the NFT to an unsuspecting buyer and receives “clean” funds.
The regulator also considered it a threat that transactions with NFTs can be made in an almost anonymous format. Owners of tokens can exchange them directly (p2p) without the use of various intermediaries and trading platforms. It is much easier to use NFTs for money laundering than art objects, the Treasury added, since the parties do not need to pay for their physical movement, insurance, customs duties and other costs.
In January 2022, the trading volume of non-fungible tokens exceeded a record $6.86 billion. The indicator increased by 157% compared to December 2021.
In 2021, the volume of trading in NFT tokens exceeded $13 billion. The indicator increased almost 400 times compared to 2020 ($33 million). 88% of NFT trading volume (more than $12.5 billion) this year was provided by the OpenSea marketplace.
Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art
