Home NFT NFT Weekly: EU Targets NFT Money Laundering

NFT Weekly: EU Targets NFT Money Laundering

by Lottar

If you believe that the prices people are willing to pay for collectible profile picture (PFP) non-flippable tokens (NFTs) have returned to healthy levels, be aware that someone just paid around $4.5 million for CryptoPunk No. 2924 paid, an 8-bit pixelated monkey.

The seller was reported to be “0x1da533” and the buyer “0x9045de,” the CryptoPunks Bot Twitter account said on September 28.

In general, there are concerns that the high prices paid for NFTs like CryptoPunks – which currently have a base price of around $90,000 and an average price of around $150,000 – make them a prime target for money launderers and money traders.

There have certainly been some suspicious sales, most notably the $529.77 million that was ‘paid’ for a CryptoPunk last year in a “flash sale” – a type of decentralized finance (DeFi) transaction in which crypto is borrowed, used and paid back in the same transaction — in which the buyer and seller were the same person.

To combat this, the European Parliament is considering adding NFT transactions to the list of crypto-assets and service providers that will be required to perform anti-money laundering (AML) checks and filings, according to a recent report.

Along with a variety of DeFi services and the Decentralized Autonomous Organizations (DAOs) that govern them, platforms and individuals trading in NFTs that hold works of art or PFPs, as well as other items such as music, videos and documents such as stocks or property titles, be required. to collect customer data from any transaction of €1,000 or more, CoinDesk reported.

Read more: Today in Crypto: EU lawmakers target DeFi

They will be added to existing “mandatory entities such as banks, real estate agents and gem dealers.”

“The metaverse offers new opportunities for criminals who can convert cash obtained through illegal activities into non-traceable currencies to buy and sell virtual real estate, virtual lands and other high-demand goods,” which are created on NFTs in blockchain-based metaverse, it added.

Meanwhile, Japanese Prime Minister Fumio Kishida said in a policy speech this week that the government’s push for the “social implementation of digital technology” will include “efforts to expand the use of Web3 services using the metaverse and NFTs .”

Jazz up Fans

Among the many businesses using QR codes to facilitate crypto payments is the NBA’s Utah Jazz, which has attached code holders to every seat in its arena. Fans can scan the codes to buy official team NFTs at its exclusive marketplace, run by crypto exchange CoinZoom.

“The NBA team wanted to offer NFTs to reward their fan base, but they didn’t want to go through this difficult process to do it,” Todd Crosland, founder and CEO of Salt Lake City-based CoinZoom, told PYMNTS said.

Purchasing NFTs on a number of major NFT marketplaces was typically a multi-step process that generally included purchasing ether (ETH) coins to make the purchase.

WMG NFT Extension

Warner Music Group announced a partnership with top NFT marketplace OpenSea that will “provide a platform for select WMG artists to build and expand their fan communities in Web3,” the company said on Sept. 29.

“Fundamental to music’s DNA is community—it’s artists and fans coming together to celebrate the music they love,” says Oana Ruxandra, the label’s chief digital officer and executive vice president of business development. “Our collaboration with OpenSea helps facilitate these communities by unlocking Web3 tools and resources to build opportunities for artists to establish deeper engagement, access and ownership.”

Warner Music has also moved aggressively into the metaverse, setting up a venue and theme park in The Sandbox at the start of the year and promising world concerts from top names ranging from Bruno Mars to Metallica.

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