Highlights
00:04 — There has been a recent development in the UK regarding NFTs. British authorities have seized NFT assets as part of a $1.9 million tax fraud investigation for the first time.
00:39 — The HMRC (UK tax authority) shared this statement, “Our first seizure of a non-fungible token serves as a warning to anyone who thinks that you can use crypto assets to hide money from the HMRC.”
00:51 — Why is it significant that it’s a UK-based issue? Well, the UK has already established itself as a favorable place for Blockchain organizations. London is one of the hubs for the cryptocurrency industry and NFTs are incredibly important to the Metaverse. They’re not just a fad.
01:17 — NFTs do more than just enable users to display property, media artwork, and more in a virtual reality space. In addition, they can be used for short-term access contracts and rental agreements. There are endless use cases beyond this.
01:34 — However, the problem is just as in the real art world: NFTs can be used for money laundering. Now, this brings up the ever-present question of governance, which is something that requires great focus being in such an early stage with the Metaverse.
02:00 — NFTs are a new battleground for money laundering. In the case that money laundering goes from the real world to the virtual world, we’re not going to make any progress and the regulatory authorities will clamp down very quickly.
02:12 — So, the question is should Metaverse platforms be instilling this governance, should they be providing KYC-like verification for NFT holders or should this be done at the point of sale of the NFTs themselves?
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