The U.S. Treasury Department on Friday issued a set of recommendations to combat illicit finance in the high-value art market and warned that the emerging digital art market, such as non-fungible tokens (NFTs), may present new risks.
In a study published on Friday, the Treasury found that there is some evidence of money laundering risk in the high-value art market, but limited evidence of terrorist financing risk, the Treasury said in a statement.
It said that those most vulnerable in the market are businesses offering financial services that are not subject to anti-money laundering or countering terrorism financing obligations, warning that asset-based lending “can be used to disguise the original source of funds and provide liquidity to criminals.”
A senior Treasury official told reporters next steps include engaging stakeholders such as those in Congress or in the industry to get their feedback, adding that the Treasury hopes the study will encourage industries to take additional steps to make it harder to launder illicit proceeds through the art market. The Treasury will give further thought as to whether additional regulatory steps are needed in this market, the official said.
The study also said that depending on the structure and market incentives, the digital art market, such as NFTs, may present new risks, as the characteristics of digital art make it vulnerable to money laundering.
NFTs are a form of crypto asset which exploded in popularity last year. All kinds of digital objects – from art to videos and even tweets – can be bought and sold as NFTs, which use unique digital signatures to ensure they are one-of-a-kind.
Prada is releasing its first NFT in partnership with Adidas: a crowd-sourced digital artwork in a Beeple-style collage, in luxury’s newest iteration in the metaverse.
From 24 January, anyone can register to submit a photograph using a specially-designed filter, that will be manipulated, scrambled up, and 40 per cent of the image removed, so as to be anonymised. Three thousand of the individual photographs will be selected by raffle, and minted by Adidas as unique NFTs for free. The individual who submitted the artwork will remain the owner, able to sell their NFT on the secondary market. The selected images will then be combined as tiles into one mass patchwork NFT, designed by digital artist and creative coder Zach Lieberman. That one-of-one NFT will be auctioned online on digital art marketplace SuperRare, and displayed as a large-scale installation in Prada and Adidas flagship stores. The patchwork style is similar to Beeple’s $69 million “Everydays: The First 5000 Days,” which set a record for a digital artwork at Christie’s auction.
NFTs are about to get more user-friendly, social, and inclusive. Are you ready?
Coinbase NFT is an intuitive, social-forward platform built for creators, collectors, and newcomers. Make, buy, showcase, or discover new art in a few taps — the platform’s design will feel instantly familiar. Want to connect with friends? Link up with fellow fans and NFT communities, right from your profile.
Whether you’re brand new to NFTs or a seasoned collector, Coinbase NFT is the only platform you’ll need, and Coinbase can’t wait to share it with you.
Today Coinbase launched the waitlist for early access to Coinbase NFT. Sign up now and refer your friends to get to the front of the line.
Before connecting to an Ethereum network to upload any NFT, it has to be created. A NFT can be anything that you decide to digitize, from taking a photo with your camera, to taking a photo of your physical artwork.
More recognizably, you can create a graphic NFT image using an app on your phone phone and if you are up for the challenge here is the time to advance your skills and learn technical graphic design through computer software.
NFTs have revolutionized the creative world and many are still wondering how can they get a piece of the digital pie. With NFTs selling for the high millions of dollars, and allowing every creative skill level to participate, there is no reason not to create your own. Back in March Beeples, Everydays-The First 5000 Days sold for a whopping $69 million.
NFTs have reawaken the purpose and value of art. Rather you call yourself an artist or not, by creating a NFT it gives you the freedom of expression and allows you to make passive income with the new age money, cryptocurrency. Days of the “starving artist” have come to an end because of the accessibility of getting your work seen by millions of people through the many NFT marketplaces.
No longer does your art have to sit in your room to be only praised by friends. No longer do you have pay galleries and curators high fees for your work to never sell. You can take matters into your own hands and make higher profits than you would with typical art payments.
Want to start making money with NFTs but you aren’t that artsy or creative? Here’s your chance to make thousands of dollars – and potentially more! Currently NFTs have generated billions of dollars and one NFT sold for nearly $70 million.
How can you make money from the NFT boom? By selling digital art that you will be one very of the first to mint on a NFT marketplace.
These images are designed by graphic artists who believe in digital currency inclusion.
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