US Treasury report outlines potential financial risks of NFTs
The government department outlined potential concerns with the NFT market, including terrorist financing, theft, and funding nuclear proliferation.
The United States Treasury Department has released its first-ever finance risk assessment for nonfungible tokens (NFTs) in an attempt to provide regulators with greater insight into potential risks and security concerns facing the rapidly evolving market.
Several potential risks were identified including the potential for terrorists to finance operations through NFTs, state actors using NFTs to fund nuclear proliferation, money laundering, and the potential risks to investors who may experience theft, rug-pulls, or other forms of fraud that have become well-known.
The report repeatedly reiterated that the vast majority of these illicit activities occur through fiat financing and transactions, and are not unique to the digital asset space.
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Author: Vince Quill
