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Suppose I was someone with money to launder. I'd draw a cat's arse, and buy it with my anonymous BTC wallet "money". No one would ever know where the money come
by yrgulation 6y ago
Suppose I was someone with money to launder. I'd draw a cat's arse, and buy it with my anonymous BTC wallet "money". No one would ever know where the money come from, especially if I anonymise transactions with one of the many services (e.g.: from what i read, some buy mining services, pay with the dirty money and viola, "clean" coin, while other services just make thousands of transactions to distribute payments and lose one's trace).
If I wanted to be real clever, I'd buy Elon Musk's or Jack's NFT, and sell it for more because hey "it's made by someone popular" so its more credible.
That's one explanation I have for the crazy amount of money moving around NFTs. Sure there are naive people, or some genuine traders, swapping NFT but those are a small percentage, and as the quote goes:
"When you have eliminated the impossible, whatever remains, however improbable, must be the truth?". Literally 90% of the coins and NFT's i dug into have no application and look at least dodgy if not outright scammy.
I have no proof other than my observations, just adding my thoughts to the conversation. The "it's rare" and "non fungible" arguments don't really stand in my view. There is a ton of rare stuff out in the real world that's simply useless.
- skyzadev 6y agoSeems plausible if you can cover all traces of where your crypto came from, and considering NFTs stay unregulated by legislation/governments. If NFTs remain a thing after all the hype & fake demand fades then I am sure regulation for NFT purchases will come into effect to combat such practices.
- CryptoPunk 6y agoLetting people in law enforcement, and the banks deputized by the AML enforcement agencies, monitor all private financial interactions, in a warrantless dragnet manner, to make a 1% dent in crime [1], is a terrible trade-off. [1] https://www.ledgerinsights.com/anti-money-laundering-has-less-than-1-impact-on-crime-at-what-cost/ https://www.ledgerinsights.com/anti-money-laundering-has-les...
- skyzadev 6y agoToday it's really hard to exchange crypto for fiat without proving your identity first. Seeing as NFTs are in the same space, I can imagine similar regulations will get enforced for NFC market places. As for the effectiveness of such measures, well, that is another discussion for another time!
- CryptoPunk 6y agoNFTs aren't money, by definition (they are literally called non-fungible tokens, and money, by definition, is fungible). From a financial perspective, buying/selling them is no different than buying/selling traditional art work, and thankfully there are no AML/surveillance law requirements to report these types of transactions to the government. So sorry, there will be no warrantless mass-surveillance/KYC of NFT transactions that unmasks the parties to the transactions.
- XorNot 6y agoI mean art has long been a money laundering favourite. NFTs are a useful optimisation. Hell, buying "worthless" NFTs right now is probably moving some big crime bucks: pay someone a grand for a thing, the wait a week and claim "mania" coz it's now suddenly bring bought for 20 grand.