The US Treasury Department: NFT s can pose new risks

A study has been published on facilitating money laundering and terrorist financing through the trade of high-value works of art, NFT or not, the ministry said in a statement. The statement said that there is evidence of some money laundering risk in the high-value art market, while evidence of terrorism financing risk is limited. The most vulnerable to money laundering in the art market are businesses that offer financial services such as art-backed loans but are not subject to comprehensive money-laundering and counter-terrorism financing obligations. In the statement, it was emphasized that the emerging digital art market, such as NFTs, may create new risks depending on the structure and market incentives. In the statement, it was recommended that private-sector information-sharing programs be developed to promote transparency among art market participants, and it was stated that training on customs practices should be updated. NFT (Non-fungible token), which stands for 'non-tradable token', allows the owner of unique digital items to be bought or sold and track who owns them using the blockchain. NFT technically encompasses anything digital, including illustrations, animated GIFs, items from songs, or video games. On the other hand, in another statement made by the US Treasury Department, it was reported that the Financial Stability Oversight Council convened under the chairmanship of Treasury Secretary Janet Yellen. The Council agreed to support an inter-agency risk monitoring system to identify potential financial stability risks posed by hedge funds and to consider options for dealing with emerging hazards.