NFT Market Is Actively Used For Money Laundering – Mr.Whale
As the NFT market grows, there is also a growing concern that nonfungible tokens could become a vehicle for money laundering by the crypto elite.
Crypto investor Mr.Whale stated in his blog that the popularity and prominence of NFTs are based on their ability to facilitate money laundering and tax evasion for the rich:
“Behind the façade of a bunch of bored rich guys buying digital art at insanely high prices is a sinister and perverse money laundering scheme for the ultra-wealthy crypto elite to make their illicit profits look legitimate.”
In his opinion, since art is subjective, NFTs are often not subject to scrutiny by legislators and regulators. This is why art has been used for centuries as a vehicle for illicit financial flows.
Buying NFT is the easiest way to legitimize money and avoid paying taxes, Whale said.
Cat Graffam, associate professor of art and design at Lasell University, confirmed to Whale that NFTs are already being used for money laundering as well as physical art.
For these reasons, both said the NFT market is likely to attract the attention of regulators and tax authorities.