The US Treasury Department has released its first assessment of the risks associated with non-fungible tokens (NFTs), stating that they are susceptible to fraud and scams.
According to the 29-page report published on Wednesday, bad actors can potentially exploit NFTs for money laundering, but there is little evidence of their use for terrorist financing.
The department suggests that specific guidelines or regulations for NFTs may be necessary to address these risks. In its statement, the Treasury emphasizes that NFTs are particularly vulnerable to fraudulent activities and can also be used for illicit purposes such as laundering proceeds from criminal activities.
However, there is limited evidence to suggest that terrorists or other malicious actors have utilized NFTs for nefarious purposes.
The Treasury has been investigating money laundering and terrorist financing within the digital currency space for some time, releasing multiple reports in recent years.
