NFT= Money Laundering?
Not really. Lets dive in
There is a risk, as there is with any industry where meaningful money is traded. However, no laundering events have been documented with NFTs.
However, it is possible that money laundering may be a small part of the NFT market.
The problem with people associating money laundering with NFTs is that most people don’t really know what money laundering is, so lets define that.
What Is Money Laundering?
Money laundering is an illegal act that makes “dirty” money (criminally sourced money) appear to be clean by making it appear like the money came from legitimate income streams. Money laundering can occur in any situation in which money is exchanged.
Money laundering can be illustrated by creating fake receipts in a shop. The receipts are fabricated, and the money is paid with the illegal money. This makes the money appear legitimate.
Because art is subjective and money laundering is common in the art industry, it is easy to launder large sums. It is worth noting that some NFT markets are purely art-based. This could make them attractive to money launderers.
Reports have shown that only 0.5% of crypto transactions can be linked to money laundering.
Are NFTs For Money Laundering?
NFTs cannot be used to launder money. Instead, NFTs can prove that you have a digital asset via blockchain. NFTs were created to enable creators to monetize and provide utility that was not previously possible (e.g. An NFT acts as a ticket to an event.
Creators have new options for monetizing their work thanks to the technology behind NFTs. Musicians no longer have to upload their music to third-party sites that take a large portion of each stream.
Instead, musicians can make a living from their music by selling it as an NFT. The purchaser can receive a portion of the revenue that’s made from streaming the song.