{"id":14972,"date":"2021-12-04T01:54:11","date_gmt":"2021-12-04T01:54:11","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/british-security-think-tanks-report-warns-nfts-could-bolster-money-laundering-schemes\/"},"modified":"2021-12-04T01:54:11","modified_gmt":"2021-12-04T01:54:11","slug":"british-security-think-tanks-report-warns-nfts-could-bolster-money-laundering-schemes","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/british-security-think-tanks-report-warns-nfts-could-bolster-money-laundering-schemes\/","title":{"rendered":"British Security Think Tank\u2019s Report Warns NFTs Could Bolster Money Laundering Schemes"},"content":{"rendered":"

The Royal United Services Institute (RUSI), the British defense and security think tank, questions whether or not non-fungible token (NFT) assets can be used for money laundering purposes. The report determines that in order to mitigate the money laundering risks a \u2018know your customer\u2019 monitoring system \u201cneeds to be implemented.\u201d<\/strong><\/p>\n

RUSI: \u2018NFT Technology Can Raise Alarm Bells From a Money Laundering and Financial Crime Perspective\u2019<\/h2>\n

The Royal United Services Institute for Defence and Security Studies otherwise known as RUSI<\/a>, was founded in 1831 and it is the oldest defense and security think tank worldwide. On December 2, RUSI published a report<\/a> that covers the subject of non-fungible token (NFT) assets and the RUSI researchers ask whether or not NFTs can contribute to money laundering schemes.<\/p>\n

\u201cThis technology can raise alarm bells from a money laundering and financial crime perspective,\u201d RUSI warns. \u201cTo start with, NFTs are most often purchased with cryptocurrencies on online marketplaces. Cryptocurrencies are routinely exploited for malicious means, such as obfuscating the source of criminal proceeds and, despite transactions being traceable, more sophisticated criminal actors use a variety of techniques to disrupt investigations by law enforcement.\u201d<\/p>\n

The RUSI report called \u201cNFTs: A New Frontier for Money Laundering?\u201d further states:<\/p>\n

A system of \u2018know your customer\u2019 policies and ongoing monitoring, similar to those used in the traditional art market and in compliant cryptocurrency exchanges, needs to be implemented.<\/p>\n

Money Laundering Considered Commonplace in Traditional Art Market \u2014 RUSI Researchers Say an \u2018Art Heist Is Also Possible Within the NFT Realm\u2019<\/h2>\n

Money laundering in the traditional art scene has been an ongoing debate for decades<\/a>. The New York Times investigative reporter Graham Bowley explained<\/a> on June 19, that U.S. politicians want to investigate the secret art market. \u201cSecrecy has long been part of the art market\u2019s mystique, but now lawmakers say they fear it fosters abuses and should be addressed,\u201d Bowley wrote.<\/p>\n

RUSI researchers stress that criminal actors can also infiltrate NFT markets and leverage \u201cnovel risks.\u201d \u201cAn art heist is also possible within the NFT realm,\u201d the RUSI report adds. \u201cCriminal actors can hack into user accounts on NFT marketplaces and transfer NFTs to their own accounts. After transferring the NFTs, the hacker can quickly sell the stolen token(s) and attempt to launder the proceeds.\u201d<\/p>\n

While RUSI researchers believe that money laundering in the NFT art and collectibles world can be deterred, the report also highlights that \u201cNFT forgery and theft can also be mitigated.\u201d RUSI suggests that NFT marketplaces use two-factor authentication (2FA) solutions and maintain \u201cgood cyber security.\u201d Furthermore, RUSI suggests developing a registry of stolen NFTs that \u201cwould mimic the Art Loss Register<\/a>.\u201d<\/p>\n

What do you think about the RUSI report on NFTs and money laundering risks? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nNews, 2FA, Art Loss Register, collectibles, Compliance, Cyber Security, Financial crime, KYC, lawmakers, Money Laundering, NFT art, NFT register, NFT technology, NFT world, NFTs, Regulations, Regulators, report, Researchers, RUSI, RUSI report, RUSI research, secrecy, think tank, traditional art market, traditional art scene<\/p>\n","protected":false},"excerpt":{"rendered":"

The Royal United Services Institute (RUSI), the British defense and security think tank, questions whether or not non-fungible token (NFT) assets can be used for money laundering purposes. The report determines that in order to mitigate the money laundering risks a \u2018know your customer\u2019 monitoring system \u201cneeds to be implemented.\u201d RUSI: \u2018NFT Technology Can Raise…<\/p>\n","protected":false},"author":0,"featured_media":14973,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-14972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/14972"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=14972"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/14972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/14973"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=14972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=14972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=14972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}