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.
Purchase NFT images on Etsy to sell on any NFT Marketplace. Earthy Realist has a collection of one of a kind images available. Only one copy of each image will be sold. They have never been minted and will be completed yours after purchasing.
NFTs have taken the world by storm and is creating new found wealth for many. In 2021 the NFT market surpassed $40 Billion. Making it to where the digital art phenomenon is catching up to the traditional art market.
NFTs, Non-Fungibe Tokens, can be sold for any amount of money and this is a great option for those who are looking to get into the crypto art market but you don’t have any art. These are original piece of digital art and your copies will not have any words on them.
For more than a decade, Kickstarter PBC has convinced the public to pay people to follow through on their ideas to build a gadget, make a film or create a piece of art. It was, in some ways, a harbinger of today’s digital economy built around cryptocurrencies, decentralized organizations and NFT art.
On Wednesday, Kickstarter plans to unveil a project that will merge the two worlds. It’s hatching a standalone company to build a crowdfunding system much like Kickstarter’s but based on blockchain technology. When it’s ready, Kickstarter will switch its own website to the new infrastructure, and the new company will make the tools available for anyone to create a competing crowdfunding site.
The new company does not yet have a name. Development is slated to begin in the first quarter of next year, and Kickstarter expects to transition its site to the new protocol sometime in 2022. The change will take place entirely behind the scenes and shouldn’t affect how people use the site, the New York-based company said.
It’s a large, technical undertaking. Embarking on the project was a “big decision,” said co-founder Perry Chen, but it was ultimately an easy one to make because it fits with Kickstarter’s mission, which is “to help bring creative projects to life.”
Chen started Kickstarter with a pair of art-loving friends in 2009, and it was a near-instant hit with cash-strapped go-getters and eventually with celebrities and big companies looking to test consumer demand. The Peloton stationary bike started with a Kickstarter campaign ($307,332 raised), and so did the Oculus VR headset ($2.4 million). Kickstarter helped finance new records from Amanda Palmer ($1.2 million) and the pop group TLC ($430,000) and revived cult classic TV shows like Mystery Science Theater 3000 ($5.8 million) and Veronica Mars ($5.7 million).
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.
Makersplace also allows you to create your own NFTs but you have to register to become a listed artist on the platform beforehand.
How To Sell NFTs
To sell your NFTs on a marketplace, you’ll need to locate them in your collection, click on them and find the “sell” button. Clicking this will take you to a pricing page where you can define the conditions of the sale including whether to run an auction or sell at a fixed price.