US Treasury says regulators should consider NFT guidance, given fraud risks By Reuters


NFTs, blockchain-based images, videos, music or text, surged in popularity during the coronavirus pandemic. The assets are highly susceptible to scammers and can be used to launder illicit funds, the Treasury Department said in a report published on Wednesday.

Still, other sectors – including other digital assets – pose greater risks for illicit finance, so regulating NFTs should not supersede other priorities, it said.


U.S. regulators have been looking to better police markets for digital assets.

© Reuters. FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023.  REUTERS/Kevin Lamarque/File Photo


“The NFT market is particularly vulnerable to fraud and scams,” the Treasury Department said.

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