Royal United Services Institute (RUSI).published a reportAn assessment of money laundering risks in the NFT market, questioning whether the burgeoning craze of digital art has become a “new frontier” for money laundering.
“NFTs are often bought too. cryptocurrencies in the online market This can be a dangerous method, such as becoming a source of money laundering. and although transactions are traceable But the criminal offenders are sophisticated. It uses a variety of techniques to thwart law enforcement investigations,” the RUSI report said.
“The perpetrators were able to hack into accounts in the NFT marketplace and transfer the NFTs to their own. After the NFTs were transferred, the hackers quickly sold the NFTs and attempted to launder the money they received,” RUSI said.
RUSI also claims that these NFTs also create room for “Other new risks” include creators secretly “hiding” data within NFT tokens. It could be a software vulnerability. then it can be used as “This data transfer mechanism between the two criminals.”
RUSI recommends that the regulatory framework applied to the exchange cryptocurrencies “Can apply” to online auctions for NFT.
“It is imperative to set the groundwork for companies that want to focus on the NFT industry, including KYC and continuous monitoring. It is similar to those used in traditional art markets and in cryptocurrency exchanges,” the RUSI article said.
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