written by Francesco Dagnino, Angelo Messore e Carlo Giuliano

Where does the money laundering risk in NFT trading come from? The general focus is currently on the regulation of cryptocurrencies. However NFTs, not being virtual currencies, are not subject to a specific regulation.

In 2021 the attention towards NFTs exploded: with a significant increase in their sales volume compared to the previous year, they are digital products increasingly used for exchange and investment.

In the world of crypto-art, in fact, NFTs are used in buying and selling transactions due to their non-fungibility. From a legal point of view, however, we need more control: the token itself is not enough to guarantee its uniqueness. It is necessary to take further safeguards, including contractual ones.

As consequence, NTFs and the market where they are exchanged are not free of money laundering risk, as well as cryptocurrencies. Their value and the speed of exchange take the focus away from verifying the uniqueness and authenticity of NTFs. This is an aspect that shall not be underestimated by all those involved: creators, buyers and exchange platforms operators.

Read the full article on HuffPost (in Italian).