NFT Weekly: EU targets NFT money laundering
In case you’re of the opinion that the prices people are willing to pay for collectable profile picture (PFP) non-fungible tokens (NFTs) have returned to sanity levels, be aware that someone just paid around $4.5 million for CryptoPunk no .2924, an 8-bit pixelated monkey.
The seller was reported being “0x1da533” and the buyer “0x9045de,” CryptoPunk’s Bots Twitter account said on September 28.
Punk 2924 bought for 3,300 ETH ($4,451,633.94 USD) by 0x9045de from 0x1da533. #cryptopunk #ethereum pic.twitter.com/PT9v9bCC5s
— CryptoPunks Bot (@cryptopunksbot) 28 September 2022
Overall, there are concerns that the high prices paid for NFTs such as CryptoPunks – which currently have a base price of around $90,000 and an average price of around $150,000 – make them a prime target for money launderers and launderers.
Sure, there have been some suspicious sales, most notably the $529.77 million “paid” last year for a CryptoPunk in a “flash sale” — a type of decentralized finance (DeFi) transaction where crypto is borrowed, spent and repaid in the same transaction — where the buyer and seller were the same person.
To curb this, the European Parliament is considering adding NFT transactions to the list of cryptoassets and service providers that will be required to carry out anti-money laundering (AML) checks and registrations, according to a recent report.
Along with a number of DeFi services and the Decentralized Autonomous Organizations (DAOs) that govern them, platforms and individuals trading NFTs that hold artwork or PFPs, as well as other items such as music, videos and documents as shares or property titles, be necessary. to collect customer data from any transaction of €1,000 or more, CoinDesk reported.
Read more: Today in Crypto: EU Lawmakers Target DeFi
They will be added to existing “committed entities such as banks, real estate agents and gem dealers.”
“The metaverse provides new opportunities for criminals who can convert cash acquired through illegal activities into untraceable currencies to buy and sell virtual real estate, virtual lands, and other high-demand commodities,” which are created on NFTs in blockchain-based metaverses , it added.
Meanwhile, Japan’s Prime Minister Fumio Kishida said in a policy speech this week that the government’s push for “social implementation of digital technology” will include “efforts to expand the use of Web3 services that use metaverse and NFTs.”
Jazz up fans
Among the many companies using QR codes to facilitate crypto payments is the NBA’s Utah Jazz, which has attached code stores to every seat in its arena. Fans can scan the codes to purchase official team NFTs on the exclusive marketplace, powered by crypto exchange CoinZoom.
“The NBA team wanted to offer NFTs to reward their fan base, but they didn’t want to have to go through this difficult process to do it,” said Todd Crosland, founder and CEO of Salt Lake City-based CoinZoom , to PYMNTS .
Buying NFTs on a number of major NFT marketplaces has typically been a multi-step process that has typically included purchasing ether coins (ETH) to make the purchase.
WMG NFT extension
Warner Music Group announced a partnership with top NFT marketplace OpenSea that will “provide a platform for select WMG artists to build and grow their fan communities in Web3,” the company said Sept. 29.
“Basic to music’s DNA is community – it’s artists and fans coming together to celebrate the music they love,” said Oana Ruxandra, the label’s chief digital officer and executive vice president of business development. “Our collaboration with OpenSea helps facilitate these communities by unlocking Web3 tools and resources to build opportunities for artists to establish deeper engagement, access and ownership.”
Warner Music has also moved aggressively into the metaverse, setting up a venue and theme park in The Sandbox at the start of the year and promising concerts in the world from top names ranging from Bruno Mars to Metallica.
For all PYMNTS crypto coverage, subscribe to the daily Crypto newsletter.
New PYMNTS study: How consumers use digital banks
A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.
