NEW YORK (Reuters) – The U.S. Treasury Division stated on Wednesday that regulators ought to take into account new steerage or guidelines geared toward limiting monetary dangers from non-fungible tokens, or NFTs, a kind of digital asset it sees as extremely vulnerable to fraud.
WHY IT'S IMPORTANT
Blockchain-based NFTs, photos, movies, music or textual content, have grown in reputation in the course of the coronavirus pandemic. The property are extremely susceptible to fraudsters and can be utilized to launder illicit funds, the finance ministry stated in a report launched on Wednesday.
Nonetheless, different sectors – together with different digital property – pose a larger threat for illicit financing, so regulation of NFTs mustn’t supersede different priorities, he stated.
CONTEXT
US regulators have been trying to higher police markets for digital property.
KEY QUOTE
“The NFT market is especially susceptible to fraud and fraud,” the Treasury stated.
