Illicit-Finance-Risk-Assessment-of-Non-Fungible-Tokens.pdf (861 KB)

U.S. Treasury assesses that NFT platforms are exposed to fraud, theft, money laundering, and sanctions-evasion risks, with far less evidence to date of terrorist or proliferation-financing misuse. The assessment says criminals can exploit weak cybersecurity controls, copyright and trademark abuse, volatile pricing, and uneven AML/CFT controls to launder proceeds from predicate crimes. Treasury points to industry compliance, law-enforcement action, public blockchain analysis, and possible further regulation as mitigation measures for NFT-related illicit finance risk.