US Treasury Report Highlights NFT Vulnerabilities to Fraud and Scams

New assessment calls for tighter regulations and better platform controls to counter money laundering risks.

NFTs are found to be highly susceptible to fraud, scams, and theft due to inadequate cybersecurity measures.
The report notes that while NFTs are rarely used for terrorist financing, they are often exploited for money laundering.
Treasury recommends raising awareness among government agencies and the private sector about regulatory obligations toward NFTs.
Current mitigation measures are deemed insufficient, prompting calls for additional regulations and industry cooperation.
The Treasury emphasizes that addressing NFT-related risks should not overshadow other higher-priority regulatory concerns.