NFT for money laundering?

[Dewiana]

There are many negative assumptions about NFT, but when many assumptions of NFT the value continues to increase...so many statements are also mixed where it seems that more parties agree

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[Vatimins]

     There will always be people who take advantage of anything and as many ways that these people can utilize. If there's a will, there's a way. It's just sad that dumb people will generalize when a few crypto holder does this. And not only that, the smart people on top that are against the idea of this industry as a whole will really take advantage of any dirt they can find to pull this industry down along with their regulator friends.

[pawanjain]

Despite of people using their money laundering in NFTs many of the NFTs these days are tanking. I wonder why is that happening.
Also, when the NFT hype started people were throwing in money for NFTs that look like shit.
People were paying thousands of dollars of coins for drawings that a school kid can draw better.
So that's definitely showing how people are laundering money through NFTs.

[kryptqnick]

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 haven't thought of it before, but it's indeed quite convenient for money laundering. You create something useless and worthless, make an NFT, open an auction, set a starting price, and then you can pretend to buy it from yourself or ask a friend to formally do that for you. The money used for the purchase can be 'black', but you get it 'white' once you sold your product. It honestly doesn't sound like anything particularly easy to regulate, and I'm sure there are similar schemes in traditional auctioning as well, so what's important is that they're regulated with equal rigorousness rather than that NFTs get super-tough regulations just because cryptos are involved.

[fullhdpixel]

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

Taxes does really mean something in some parts of the world, however in others where third world nations do not have any type of "understanding" of crypto and NFT so getting taxes on that becomes a very big challenge for the government. They do not have workers who understand what NFT is and how they could be taxed and follow it up on the NFT artists in their nation to tax them.

Right now, in our nation there is a super famous celebrity is doing NFT as well and I doubt he would be even forced to pay taxes, he may pay because he wants no trouble but even if he avoided dude would have been fine, only because nobody would know how to ask it.

[budi12]

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

People with evil intentions will always find a way to make their plans possible and they take it. Everything is going to happen and this kind of lawlessness is very hard to stop especially as technology continues to improve. Problems like this may be the reason for ending the NFT project as there will be pressure to quit.

[pjwaffle]

NFT is a fertile market for money launderers where people are buying jpg files for millions of dollars that you can't even see or feel the fact that it's artistic or beautiful how. It is a very good place for criminals to take advantage of this vulnerability and Criminals can now create a lousy work of art and sell it for millions of dollars to a predefined buyer through cryptocurrency. . Currently, according to the news, I read that the crime of money laundering with electricity is increasing and the number is alarming.

[lalabotax]

Probably, it has a chance. We know how popular NFT is right now, many people are concerned about NFT, so many platforms offer NFT, and many new people are coming into NFT, both creating or even investing in NFT.
About the possibilities of using NFT for money laundering, well, it may also be. For some people who want to do money laundering, they will seek as many ways to do that. But they are commonly professionals and have certain teams so that they will choose the trusted and popular NFT, mostly.

[bhooscream]

NFT future isn't so clear, surely won't be the right place for money laundering. I don't see a big reason that people want to have NFT for money laundering. However, the possibility of using NFT for money laundering isn't impossible. For a few people, NFT may be suitable to put their money there. The people who love NFT, may use it for money laundering. While the common people, I guess they prefer to choose Bitcoin for money laundering.

[bahagia93]

There are many negative assumptions about NFT, but when many assumptions of NFT the value continues to increase...so many statements are also mixed where it seems that more parties agree

Those who agree are NFT lovers where they can all use NFT in the games and arts they like, and in general NFT is actually not bad, but if for some people who don't like it, then they will always ignore it.

[sirminesalot]

NFT future isn't so clear, surely won't be the right place for money laundering. I don't see a big reason that people want to have NFT for money laundering. However, the possibility of using NFT for money laundering isn't impossible. For a few people, NFT may be suitable to put their money there. The people who love NFT, may use it for money laundering. While the common people, I guess they prefer to choose Bitcoin for money laundering.

I think it's more make sense if the bad guy doing money laundring with NFT because the price could be made by theirself with out of mind price they will pretend the NFT is sold and buy it by theirself. Money laundring with BTC is more easy to discovered because btc price is visible to anyone even the address is anonymous, but if there are a big transaction there will be detectable and they will find out what happened behind the transaction.

[yazher]

Of course now it is possible but money can be laundered in other ways. Companies that monitor blockchains and try to identify users are already starting to work with nft. I think in the future this method will be less popular than now just because of such companies.

They will lose everything if they don't find a way to solve the problem when their system will run out of rewards. When it happens it seems like they run out of ideas as well and just decide to close their games. If you guys have to know what has happened to Cryptoblade, it was the most popular NFT game back 2-3 months ago but everything changes when they run out of reward pools and decided to continue opening their game but this time with negative rewards which cause lots of damage to their users. They lose lots of players and trust because they were only good at their promises not with their actions.

[elisabetheva]

There are many negative assumptions about NFT, but when many assumptions of NFT the value continues to increase...so many statements are also mixed where it seems that more parties agree

always every new and going well, it is certain that there will be other reactions from many parties who may not like it or really like it. we can not avoid it, all have the ability to do it.
but NFT is still new and unseen for the future and still has a long way to go to be the best, judging by other experiences.

Those who agree are NFT lovers where they can all use NFT in the games and arts they like, and in general NFT is actually not bad, but if for some people who don't like it, then they will always ignore it.

true, no one will be able to satisfy everyone, there will always be pros and cons and this is a natural and natural thing that always happens not because this is NFT. so it takes patience because NFT is still very new and can't see its development in the future whether it will survive or just temporary rhetoric from those who can look for opportunities.

[Rufsilf]

I suspect high level organizations or scammers have already using NFTs to launder their money, for starters they can just create any arts they can and have the desired amount to match their laundered money to have a clean NFT money. And because NFT is easy to use they can launder everything have without even cracked down by the governments.

But sooner or later the government will know this system they're using but even if they can crack any criminals in NFT. There's still a lot of escape route other than NFT itself.

[Ros-In]

many reports have emerged that so far the price of expensive nft sold is not all real bought by collectors, but bought by friends or relatives.
I'm sure nft games will become a new trend but not sure nft which is just a picture or video without any function of the nft will continue to sell.
maybe it can be an innovation for a license in the future

[Dread Pirate Roberts]

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 think not only NFT . all services related to crypto can be a place for money laundry such as exchanges, mixing coin services, cloud mining, defi platforms, all of these services can be used for things like that. as well as tax evasion. no tax for crypto holders.

[Ararbermas]

In my personal opinion probably yes NFT's is one of the common way of money laundering nowadays because of how it so popular around the internet and there's still a lot of investors looking forward for a new nft project just to don't miss the hype in the market ..so its not surprising that it can be used for money laundering because indeed it's always happened very often in the crypto space, for me the best solution to avoid such scheme  is to always trust those hight trust rating sites that listing crypto project.. Because that's the only thing that can give us more information about new NFT projects..

[cheezcarls]

In the Philippines, I have watched a webinar regarding taxes especially in the crypto and NFT space. Basically, they just said that whatever NFT you sold, it is classified as “realized” and it is subject to tax once converted into fiat money. It can be easily traced if withdrawn through a custodial wallet and then into a bank account, e-wallet or remittance. But for P2P transaction, it’s a different story and it’s hard for them to trace it.

There’s a possibility that NFTs can be used for money laundering if not regulated very well by the national government. It’s a whole new and challenging space for them, so doing some in-depth regulation is going to take a long while. But for now, they’re just gonna stick to any type of income that is realized that will be subjected to tax.

[Sethrey]

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.

Worst case for crypto is its regulation and ban of privacy coins. But even for that case I know the way out. Crypton https://u.is/en/currencies.html has its own decentralized exchange that couldn't be blocked and any of your transactions couldn't be tracked. Moreover it gained +50% to its rate in 24 hours after the latest listing. I think it already proved its worth.

[bbc.reporter]

It also appears that NFTs are also being wash traded to make them appear more valuable and in demand. I reckon NFT will have a future in the cryptospace similar to works of art from famous artists, however, spending $500 million over a Cryptopunk generated and issued from a website? This is very foolish. This is worse than the pump and dump ICOs of 2017.



A wild-haired, black lipstick-sporting CryptoPunk that apparently sold for more than $500 million worth of Ether was actually just wash traded.

The saga of CryptoPunk 9998 started on Thursday when somebody transferred the pixelated artwork between Ethereum addresses, reports Bloomberg.

Less than two hours later, the Punk’s new address moved it on again, selling it for 124,457 ETH ($532 million). All of the funds were apparently borrowed, primarily from Compound.

However, the merry-go-round didn’t stop there.

The ETH spent on the piece was transferred to the seller then sent straight back to the buyer to repay the loan used to buy the female Punk in the first place.

Source https://protos.com/cryptopunk-500m-wash-trading-crypto-nft-of-course/