Newblock
  • News
    • Bitcoin
    • Ethereum
    • XRP
    • Solana
    • Cardano
    • Blockchain News
    • Press Releases
    • Events
  • Analysis
    • Market Analysis
    • Price analysis
  • Ranking
No Result
View All Result
  • Login
Buy crypto
Newblock
  • News
    • Bitcoin
    • Ethereum
    • XRP
    • Solana
    • Cardano
    • Blockchain News
    • Press Releases
    • Events
  • Analysis
    • Market Analysis
    • Price analysis
  • Ranking
No Result
View All Result
Newblock
US Treasury nft

US Treasury targets NFTs for potential high-value art money laundering

February 7, 2022
in Blockchain News
415 9
0
Share on FacebookShare on Twitter

The U.S. Department of the Treasury released a study on the high-value art market, highlighting the potential in the nonfungible tokens (NFT) space to conduct illicit money laundering or terror financing operations.

The treasury’s “Study of the facilitation of money laundering and terror finance through the trade in works of art” suggested that the increasing use of art as an investment or financial asset could make the high-value art trades vulnerable to money laundering:

“The emerging online art market may present new risks, depending on the structure and incentives of certain activity in this sector of the market (i.e., the purchase of NFTs, digital units on an underlying blockchain that can represent ownership of a digital work of art).”

The study underlines the importance of NFTs in representing ownership of the digital and physical property that is managed and controlled via smart contracts and digital wallets. The treasury also points out that the price of NFTs is determined by the buyer and seller and not the market:

“According to U.S. authorities, in the first three months of 2021, the market for NFTs generated a record $1.5 billion in trading and grew 2,627 percent over the previous quarter.”

However, the NFT market in 2020 alone was valued at more than $20 billion. The U.S. treasury suggested a possibility where criminals can purchase NFTs with illicit funds and resold to an unwary collector “who would compensate the criminal with clean funds not tied to a prior crime.”

NFTs can also be sold via peer-to-peer (P2P) sales, which bypasses the need for an intermediary or recording the transaction over the public ledger. While underscoring the various money laundering vulnerabilities made possible by the NFT ecosystem, the treasury concluded:

“Moreover, traditional industry participants, such as art auction houses or galleries, may not have the technical understanding of distributed ledger technology required to practice effective customer identification and verification in this space.”

Related: NFTs and DeFi overturn a banker‘s generational curse of poverty in 2 years

Brenda Gentry, a USAA mortgage underwriter turned crypto entrepreneur, recently shared how the cryptocurrency ecosystem offered her a fighting chance to overcome the generational curses of poverty.

Gentry, a.k.a. MsCryptoMom, left her decade-long job as a banker to pursue a full-time crypto career as her initial investments from early 2020 confirmed the “unprecedented opportunities offered by crypto.”

My biggest flex this year was walking away from my banking career of 16yrs to go into crypto full time!

Retired my parents and now my goal is to retire my siblings and get them working for themselves!

NFTs and DeFi are breaking down generational curses of poverty.

— Cryptomom (@MsCryptomom1) October 9, 2021

Acknowledging the big learning curve into crypto, Gentry provides educational content through her website:

“I’m also hosting seminars to educate the general public about navigating in this space and things to look out for when searching for good NFT projects or DeFi tokens, and also how to quickly detect scams or rug pulls.”

Source link

You might also like

Microsoft NFT ban

Microsoft NFT ban

August 4, 2022
Blockchain and digitization to take center stage at Davos

Blockchain and digitization to take center stage at Davos

May 20, 2022

Related News

Microsoft NFT ban

Microsoft NFT ban

by Editorial Team
August 4, 2022
0

Microsoft says NFTs and blockchains aren't welcome in Minecraft Microsoft Cites flakiness of NFT community and speculative activity as inimical...

Blockchain and digitization to take center stage at Davos

Blockchain and digitization to take center stage at Davos

by Editorial Team
May 20, 2022
1

The annual meeting of the World Economic Forum (WEF) is scheduled to take place from May 22–26,  marking the first...

qmall crypto license

Crypto License & Payment Gateway Authorized by EU Regulators

by Editorial Team
April 21, 2022
0

It seems there’s hardly a month goes by when we don’t hear at least some exciting news about Ukraine’s QMALL...

FC Barcelona to Get Into Metaverse and NFTs

FC Barcelona to Get Into Metaverse and NFTs

by Editorial Team
March 5, 2022
1

The FC Barcelona, a soccer club with a large fanbase in Spain and Europe, has revealed its plans to take...

Next Post
Russia crypto

Russian Government to Present Regulatory Scenarios for Cryptocurrencies Within a Week, Report

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get daily news updates to your inbox!

Popular

  • crypto price analysis

    BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOGE, DOT, AVAX

    21678 shares
    Share 8671 Tweet 5420
  • Google Launches Blockchain Division

    5331 shares
    Share 2131 Tweet 1332
  • Microsoft Reveals Activision Purchase for $68.7 Billion as an Approach to the Metaverse

    972 shares
    Share 389 Tweet 243
  • GAIMIN Brings Blockchain and NFTs to Minecraft – Press release Bitcoin News

    957 shares
    Share 383 Tweet 239
  • Coinbase exec says major Ethereum scaling improvements coming soon

    923 shares
    Share 369 Tweet 231

Recommended

US Lawmaker Launches Bill to Prohibit the Fed From Issuing Digital Currency Directly to Individuals

US Lawmaker Launches Bill to Prohibit the Fed From Issuing Digital Currency Directly to Individuals

January 14, 2022
Can blockchain solve its oracle problem?

Can blockchain solve its oracle problem?

January 12, 2022
Newblock

Newblock is a blockchain news service that covers bitcoin and altcoin news, technical analysis & forecasts for bitcoin price and other altcoins.
© 2022 Newblock

Navigate Site

  • Blockchain news
  • Crypto Analysis
  • Ranking
  • Media Partnerships
  • Privacy Center
  • Contact Us
  • Donate

Follow Us

No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • XRP
    • Cardano
    • Solana
    • Blockchain News
    • Press Releases
    • Events
  • Analysis
    • Market Analysis
    • Price analysis
  • Ranking
  • Buy Crypto
  • Privacy Center
  • Contact Us
  • Donate

Newblock is a blockchain news service that covers bitcoin and altcoin news, technical analysis & forecasts for bitcoin price and other altcoins.
© 2022 Newblock

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.