NFT for money laundering?

[DarkDays]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

However, the lawmakers are beginning to crackdown on the art market. I reckon for the first time in the cryptospace, the government might be there ready, waiting in advance and backed with regulations hehehe.

Well, for some people NFTs could be a way to evade tax while for others it is a way to spend their crypto on the NFT that they really value.

In terms of taxation and government regulation, I find it hard to believe that governments will be ready they're not yet but the leats they can do is start putting the regulations in place or at least think about them.

And it is no easy task, the NFT sea is just as wide and broad as the crypto market itself so it will take sometime before we see standardised regulations.

Either way, I see this as a step forward in giving crypto the recognition it deserves!!!

[Hypnosis00]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

....

This is just about to ruin the crypto space. Such illegalities have been rampant because of unnoticeable transactions online. People who have evil intentions will always find a way to make their plan possible and they took this. It is all just about to happen and these kinds of illegalities are really hard to stop especially as the technologies keep on upgrading.

Soon the authorities will crack this kind of activity and this might be the reason for the end of NFT's projects as there will be an urge stoppage. It is quite bothering for those who invest them and much better to do the exit before it is becoming late.

[Kyraishi]

I think that a lot of NFTs are definitely used for wash trading activities to prop up prices.

In terms of actual money laundering, however, I think that there is a lack of evidence right now to say that NFTs are actually used in that regard.

I would definitely avoid investing in NFTs right now given the hikes that it has seen over the past year for seemingly no apparent reason. Regulators are going to tighten up on this area very soon and a lot of value will be wiped.

[HashingTower]

Money laundering and task evade can't work on NFT because users have no way to get away with it, NFT isn't a privacy coin like Monero and others, money laundering fits Privacy and secured coins more than NFT projects, Privacy coins like Monero has extra security layers built in them and few privacy coins do have more features making them a perfect fit to get away with money laundering, not NFT.

[Reid]

Its growth caught the eye of the government huh?! Where there is money, different government services will also be there.
Follow the smell of paper, the smell of ink and machine print.
I am confused, they cannot even clean up the money laundering in their own cash and yet they want to go deep into the crypto space.
If only they could catch the guys doing this method using their cash as deposits then it could be prevented in the first place. It won't even become an NFT.

[so98nn]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.
[...]
This year, the treasury department is expected to complete a study on whether there is evidence of money laundering in the broader art market. [...]

Well more or less art is "tax free" most of the time and that is the main reason big peeps are always looking after to buy the arts and try to hide their investments or get tax relaxation.
The thing is, government allows this so that the Worlds best art can be preserved properly and be maintained all the time for longer life. That's the main reason historical arts gain value over the time. Otherwise why would a old rich guy go and buy it anyways. Well the last statement was just out of fun but refers to things which we call as unregulated market but out of valid reason.

Coming back to the NFT, well that's whole new era and the beginning of NFT started with trade between two accomplices who are now under radar and they called off that million dollar deal out of money laundering. So yeah, there is high chance NFT is being used for the same.

[MCcryptonia]

Laundering money using NFT is a big mistake because NFT has nothing to do with anonymous, it's not sero or xmr where you can hide transactions and so on, why NFT OP? That's a wrong claim

[goinmerry]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

I don't think it's something new. Crypto, whatever the trend, be it ICO, Defi, NFT is always subject to money laundering or any fraudulent activity even before.

I just can't think of a way of HOW money laundering will be done in or thru NFT? Somebody can care to explain?

[enhu]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

I don't think it's something new. Crypto, whatever the trend, be it ICO, Defi, NFT is always subject to money laundering or any fraudulent activity even before.

I just can't think of a way of HOW money laundering will be done in or thru NFT? Somebody can care to explain?

Neither do I. It's probably true that NFTs will be used for money laundering since he said art is not regulated. A lot of things can be done when markets are unregulated. I just can't see how enormous the prices are when in fact those .pngs are much like created by a 10year old kid. But it's still a mystery to me how it could be done.

The bidding of NFTs marketplaces seems to be legit. I'm tempted to create NFT with some of the artworks I've made and upload them on marketplaces.

[vv181]

~snip~

I just can't think of a way of HOW money laundering will be done in or thru NFT? Somebody can care to explain?

Neither do I. ~snip~

The simplest scenario about how it probably works is like this, let's say you have some illegal coin that you get from whatever illicit things. In order to easily cash out the money, you can simply mint an NFT, set an enormous amount,  and then buy it on your own. Your illegal coins are now becoming a clean coin, that you can state it comes from selling NFT. In short, you buy your own NFT.

At least, that is what I comprehend from knowing it across many news and some opinion. Things are, I didn't deny that scenario likely could happen so easily. But in another hand, no matter what the regulatory outcomes, IMO, NFT is a great thing that I'm sure is here to stay.

[michellee]

Laundering money using NFT is a big mistake because NFT has nothing to do with anonymous, it's not sero or xmr where you can hide transactions and so on, why NFT OP? That's a wrong claim

We never know for sure, but people who do money laundering will know how they should use it. And if NFT can be the new way for them, they will try it while also trying to search for the other. Using private coins will help them money launder as they can hide the detection from the regulator or others. But I hope there is nothing we should worry about.

[bitcon]

Personally I don’t consider NFTs very good for money laundering. Actually private coins or different platforms that hide your personality such as Tornado Cash, are much better for this purpose. In terms of NFTs, they are not really private, so everybody can track their transfers,that is why I don’t think that they are really good for money laundering, criminals will be caught easily.

[RussianEnglishTranslation]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

However, the lawmakers are beginning to crackdown on the art market. I reckon for the first time in the cryptospace, the government might be there ready, waiting in advance and backed with regulations hehehe.



This year, the treasury department is expected to complete a study on whether there is evidence of money laundering in the broader art market. The Senate banking committee will then use the findings to determine whether the same anti-money laundering provisions applied to antiquities dealers should apply to all art dealers.

According to one art law attorney, the outcome of that study is “a foregone conclusion: an alliance of government regulators, class-conscious legislators, and art market critics will seize upon the opportunity to convince the Biden cabinet to regulate the art business,” says Michael McCullough of the New York firm Pearlstein and McCullough.

Read in full https://news.artnet.com/art-world/what-will-stricter-us-oversight-of-the-antiquities-trade-look-like-1935081

NFT sales are on chain though, it's safer to use mixercasino dot com.

[enhu]

~snip~

I just can't think of a way of HOW money laundering will be done in or thru NFT? Somebody can care to explain?

Neither do I. ~snip~

The simplest scenario about how it probably works is like this, let's say you have some illegal coin that you get from whatever illicit things. In order to easily cash out the money, you can simply mint an NFT, set an enormous amount,  and then buy it on your own. Your illegal coins are now becoming a clean coin, that you can state it comes from selling NFT. In short, you buy your own NFT.

At least, that is what I comprehend from knowing it across many news and some opinion. Things are, I didn't deny that scenario likely could happen so easily. But in another hand, no matter what the regulatory outcomes, IMO, NFT is a great thing that I'm sure is here to stay.

Buying my own NFT with the dirty money makes sense. Maybe those NTFS with astonishing prices like the Bitcoin Angel or the "disaster girl" NFT are laundering kind of transactions.

But probably not all, I have been in many NTF marketplace and I can see NFTS are very high quality but prices are just 0.02ETH. These are probably the bonafide ones created in good faith.

[wissy]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

However, the lawmakers are beginning to crackdown on the art market. I reckon for the first time in the cryptospace, the government might be there ready, waiting in advance and backed with regulations hehehe.

Now that you mention it, it does sound like a perfect way to launder money, at least until this become wide spread thing to do. NTF market is baffling to me and i have problems understanding, how much money are people willing to spend on random art. If you are a decent artist, this is your perfect chance to get some money from it.

[nelson4lov]

NFT’s are a scam mostly in my opinion. People sell NFT’s to themselves using multiple seller accounts. They artificially inflate the price of their NFT by selling it to themselves for a lot of money. They then re-list the NFT & hope some rich idiot falls for it & buys it.

I mean come on, who wants to pay several hundred thousand $ for an image. It’s not art, it’s a scam.

I've been feeling that way too since I got to learn about NFTs and how they have been blowing up everywhere. The more I thought about it, the more confusing it became so I just decided to give it a try. Joined a couple of my buddies to mint an NFT on solana blockchain for 5 SOL. Now the floor price is around 0.7 sol. That's why even if NFTs are the next big trends, I'm not sure about the utility yet. People just buy this JPEGS with the hope of selling them at a higher price.

[Jackl87]

I have speculated that NFT will be the next part of the cryptospace where much of the money laundering and tax evasion might occur. Why is this? This is because NFT is art and much of the art world is unregulated.

However, the lawmakers are beginning to crackdown on the art market. I reckon for the first time in the cryptospace, the government might be there ready, waiting in advance and backed with regulations hehehe.

This year, the treasury department is expected to complete a study on whether there is evidence of money laundering in the broader art market. The Senate banking committee will then use the findings to determine whether the same anti-money laundering provisions applied to antiquities dealers should apply to all art dealers.

According to one art law attorney, the outcome of that study is “a foregone conclusion: an alliance of government regulators, class-conscious legislators, and art market critics will seize upon the opportunity to convince the Biden cabinet to regulate the art business,” says Michael McCullough of the New York firm Pearlstein and McCullough.

Read in full https://news.artnet.com/art-world/what-will-stricter-us-oversight-of-the-antiquities-trade-look-like-1935081

That would be a very unsafe way to"park" your money though. I mean in the end NFT's are at the moment the current hype withing the crypto space and we still see a lot of NFT trades going on but if i remember correctly i read a few days ago that the trading volume of NFT's has been going down for a while and at the moment it is pretty high again, but you don't know how it will be in a few months or in a few years, when you want to cash out your NFT for money. It is possible that the NFT that you own is worth absolutely nothing by then. I also think it is not really money laundering if you invest into an asset that is art so that is absolutely legal.

[indo1]

yes, it could have happened. But so far the NFT trend is fine. There is no word on the creation of money from NFT. But I believe the government is ready to tackle money laundering in this art market. I hope the NFT trend can follow government regulations.

[adiebitsler]

yes, it could have happened. But so far the NFT trend is fine. There is no word on the creation of money from NFT. But I believe the government is ready to tackle money laundering in this art market. I hope the NFT trend can follow government regulations.

If the NFT can follow government regulations, what good things will the NFT get in this case? as well as what good things will be experienced by NFT lovers in the cryptocurrency space, because this NFT is very different from other coins in general.

[Doell]

I think the government has looking at the NFT for tax regulations ,art workers are booming and tax-free in NFT that's right government doesn't want to pass up an opportunity where money flows
NFT in blockchain network is public so it can be scrutinized ,using their product to money laundry or avoid taxes I think it goes into the lion's den ,well so criminals will think again to do it on the NFT platform ,tracking on public networks is easy to research but on the network private is hard so if I were a criminal then I wouldn't use NFT for money laundry