WASHINGTON, United States — A US government report released Wednesday found non-fungible tokens (NFTs) to be “highly susceptible to use in fraud and scams,” urging for more regulations to be considered on these digital units.
While NFTs and NFT platforms have so far rarely been used for acts like terrorist financing, they can be used to launder proceeds from crimes, according to the report by the US Treasury Department.
“This risk assessment demonstrates Treasury’s commitment to analyze illicit finance risks of newer technologies and communicating them to industry and law enforcement,” said Brian Nelson, Treasury Undersecretary for terrorism and financial intelligence.
NFTS, which became popular in 2021, are digital works that cannot be replaced or modified and are therefore unique.
Each has a digital certificate of authenticity which in theory cannot be tampered with — it is registered in a blockchain, like…
