This will take place on February 6, United States Department of the Treasury has released a report under the headline “Study of the facilitation of money laundering and terror finance through the trade in works of art.” In fact, only a tiny fraction of the 40-page document is dedicat to the “Emerging Digital Art Market,” by which the department understands the market for nonfungible tokens, or NFTs. Even though this is a very brief reference to NFTs, it can have important implications for how the regulators approach the asset class.

This is what the report stated

Overall, the tone of this report is not alarming for NFT. It casually mentions growing interest from both legacy institutions and private investors in the digital art space. Nevertheless, several key points illuminate potential areas of regulatory anxiety with regard to this exploding sector of the digital asset industry, which, according to the Treasury’s estimates, generated $1.5 billion in trading volume in the first three months of 2021.

What are the actual risks?

Future of digital art