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Work of art
Key points
- HMRC has seized cryptoassets in the form of three digital artwork non-fungible tokens.
- Aspects of NFTs increase their risk of being used in money laundering.
- Current AML measures place obligations on the businesses that assist with the transfer or storage of cryptoassets.
- An entity that fears exposure to the regulations should seek expert legal advice.
HMRC has reportedly been the first UK law enforcement authority to seize cryptoassets in the form of three digital artwork non-fungible tokens (NFTs). Alongside the NFTs HMRC has reportedly also seized other types of cryptoassets. These seizures were all part of an investigation into suspected VAT fraud thought to be worth £1.4m.
Interestingly while the seized non-NFT cryptoassets are said to be worth around £5 000 the three digital artwork NFTs are yet to be valued. The crypto market is well known for its volatility and NFTs are notoriously hard to...
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