US Treasury Department Highlights Potential In NFT Industry To Conduct Illegal Operations

The U.S. Treasury Department has pointed out the great-value-based art market, displaying the potential in NFTs to conduct illegal operations such as money laundering or terrorist financing. According to the treasury’s study, the rising usage of art as a financing or fiscal asset can make the great-value art business unsafe to money laundering.

Emerging networked art markets may show new endanger in terms of the format and reasons of certain activities in this segment of the market (for example, the acquisition of NFTs digital units on a core blockchain that may represent digital artwork ownership).

This study highlights that NFTs are very important in representing digital and physical property ownership, smart deals and digital wallets are used to manage and control it. The Treasury also states that the cost of NFTs is decided by the purchaser and salesperson, not the market.

U.S officials reported that in the early three months of the year 2021, the market of NFTs earned $1.5 billion in business which is a record, up 2,627% from the previous quarter.

However, the NFT market value exceeded $20 billion in 2020. According to US Treasury’s suggestion, there’s a probability that criminals could buy NFTs with illegal money and resell them to a careless collector “who will reimburse the offender with clean funds that are not linked to any previous offenses.”

The P2P sales method is also used for selling NFTs, which ignores the need for mediators or record transactions on a public ledger. Highlighting the various risks of money laundering was made possible through the NFT ecosystem.

Adding more to it, the US Treasury stated that conventional industrial contestants, like art auction houses or arcades, do not understand the technicalities of shared ledger technology needed to practice active consumer recognition and certification in this spot.

Brenda Gantry, an underwriter who belongs to USAA mortgage, recently described how the crypto ecosystem allowed her to fight the racial scourge of poverty.

Gentry, a.k.a. MsCryptoMom quit its decade-long job as a banker to adopt the cryptocurrency career as full-time because its initial investment in the early period of 2020 proved the “unparalleled opportunities provided by crypto.”

Recognizing the major learning curves in cryptocurrency, Gentry presents educational materials through its website:

Talking about this, she said that she is also educating people through seminars about the place to be, and these things should be kept in mind when looking for good NFT plans or DIFI tokens. She also told them how we could capture scams or rug pulls as soon as possible.

The post US Treasury Department Highlights Potential In NFT Industry To Conduct Illegal Operations appeared first on CryptocyNews.com.

from CryptocyNews.com https://www.cryptocynews.com/us-treasury-department-highlights-potential-in-nft-industry-to-conduct-illegal-operations/
via Bitcoin News
via Bitcoin News Today