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Oh but NFTs have a very clear value proposition: money laundering. They literally have no value other than what is attributed to them, so if you want to clean
by riffraff 5y ago
Oh but NFTs have a very clear value proposition: money laundering.
They literally have no value other than what is attributed to them, so if you want to clean up some money you just have to buy an NFT with legit money for X, then sell it to yourself using less-than-legit money.
Now you own all legit money, and have only spent some minor transaction fees.
- sizzle 5y agoWow that means OpenSea is like the Silk Road of money laundering.
- graeme 5y agoWill that really work long run? It seems too obvious. But thank you, that’s the most concise explanation I’ve seen for exactly how people could use NFTs to launder money. If this is happening, would you expect to see a bunch of NFTs go from nothing, then sell for a large amount, then not move again? Oh also I think you’d also have to declare capital gains tax to do it properly, but that’s better than laundering money via income.
- riffraff 5y ago> Will that really work long run? It seems too obvious. it is supposedly something that happens often with physical art, and there have been a lot of attempts to prevent it via regulation, e.g. the AML Standards for Art Market Operators[0]. In crypto space as usual we're at the "frontier" state where lack of regulations allow shady behaviours, and they will until the authorities catch up and crypto becomes "normalized". [0] "Once purchased, the art can disappear from view for years, even decades." https://www.moneylaunderingnews.com/2019/03/art-and-money-laundering/ https://www.moneylaunderingnews.com/2019/03/art-and-money-la...