NEW YORK (Reuters) – The U.S. Treasury Division on Wednesday mentioned regulators ought to weigh new steering or guidelines aimed toward curbing monetary dangers from nonfungible tokens, or NFTs, a kind of digital asset it deemed extremely vulnerable to fraud.
WHY IT’S IMPORTANT
NFTs, blockchain-based pictures, movies, music or textual content, surged in reputation through the coronavirus pandemic. The property are extremely inclined to scammers and can be utilized to launder illicit funds, the Treasury Division mentioned in a report printed on Wednesday.
Nonetheless, different sectors – together with different digital property – pose higher dangers for illicit finance, so regulating NFTs mustn’t supersede different priorities, it mentioned.
THE CONTEXT
U.S. regulators have been trying to higher police markets for digital property.
KEY QUOTE
“The NFT market is especially weak to fraud and scams,” the Treasury Division mentioned.
