Non-fungible tokens (NFTs) are rapidly becoming more and more popular.
From now on NFTs are also supported on Coinfirm’s AML platform.
Creating an AML Risk Report for a blockchain address that is a smart contract for an NFT shows the precise information:
An AML Risk Report for an example of such an address gives a medium risk score. However, information about it being a smart-contract for an NFT is clearly presented on among possible risk indicators.
Why do non-fungible tokens matter in terms of AML? Commonly used in digital art markets – for example on most popular OpenSea or Rarible platforms. And as in the case of the traditional art market – such investments are hard to evaluate and could potentially be a way of money laundering.
NFTs are a rapidly growing area in blockchain and cryptocurrencies as the real-world applications of NFTs begin to incorporate more of the traditional economy. Therefore, support for detailed NFT tracing will be soon extended – stay tuned!