US Treasury Unveils Report on NFT Market Risks
The Treasury Department of the United States has issued a finance risk assessment for nonfungible tokens (NFTs), aiming to provide regulators with a better understanding of the security concerns and potential risks associated with the fast-paced NFT market.
The assessment identifies several risks, such as the possibility of terrorist organizations using NFTs to finance their operations, or state actors utilizing them for nuclear proliferation.
The report also acknowledges the risks investors may face from theft, rug-pulls, and fraud, which have become common in the NFT market.
However, the report emphasizes that the majority of illicit activities occur through traditional methods and not through digital assets.
The Treasury Department stresses that most money laundering, terrorist financing, and proliferation financing take place through fiat currency or other traditional means outside of the digital asset world.
