The Non-Fungible Token (NFT) has recently been gaining much interest, especially with many participating global influencers.
This increase in NFT continues to increase due to the many uses provided. Unfortunately, there is a negative usability assumption of NFT.
The assumption is that the use of NFT is a place to launder money for high-income parties, as is done in the world of Art.
NFT = Money Laundering Place?
One of the parties giving this negative assumption is a crypto investor with the nickname Mr.whale, that has been attracting attention on social media.
In an article via his blog earlier this week, Mr Whale expressed his views on the world of NFT.
He stated that he thinks the NFT world can be used as a place to launder money for the affluent and, unusually, avoid taxes. His statement read,
“Behind the abundance of rich people buying expensive assets, there is the potential for malicious intent to launder money for illegal gain.”
He argued that because Art is an item whose value is uncertain because it depends on the viewer, the NFT has problems with regulation.
Furthermore, he added that the artistic aspect of NFT could make it a tool for money laundering, considering this is happening in the world of Art. This statement has received mixed responses, with many seeming to agree.
Many people feel that this phenomenon can be used to gain more profit.
The context of money laundering discussed in his view is how these parties avoid paying taxes.
There are other responses to Mr Whale, which is a form of correction also approved by Mr. whale.
The party stated that money laundering is always happening but currently only moving to the crypto world.
This news is not considered a negative sentiment but only a view of the possibility of the system avoiding taxes.
Tax evasion and money laundering have been around for long before crypto, so that view is just a personal explanation, not a rebuke.
View of The Money Laundering Mechanism
According to Mr Whale, this money laundering aspect is relatively easy to understand. He described his explanation through a statement from a USA Today journalist. He stated,
“If you had $1 Million in illegal money, you would buy NFT with that money. You can do this with a third party account. Then you resell it for a profit and make the initial money legal.”
Another way to do this is to use the money to buy NFT and then donate the money from the sale of the NFT so that you don’t have to pay taxes.
That way, if the state allows tax cuts through donations, then NFT investors can make a profit and avoid taxes.
Cat Graffam of Lasell University stated to Mr Whale that NFT had been used as a money laundering tool like fine arts. He stated,
“It would be easier to use NFT to transfer illegal money. Coupled with the absence of a physical form, NFT makes the perfect tool for tax evasion.”
As a result of these things, NFT is currently attracting the attention of several regulators and tax authorities.
According to Mr Whale, it is undeniable that the government will intervene in the NFT phenomenon in the future.
Currently, regulations regarding the NFT tax are being drafted so that in the future, it seems that this mechanism will not be as accessible as it is now.
However, considering the art industry, which is still used as a tool for money laundering and tax evasion, the same situation in NFT is still difficult to avoid.
More News About Crypto : NEWS
Follow our Twitter : https://twitter.com/DinoDapps
