Tax authorities of several countries warned of the dangers of NFT and Cryptocurrencies

Tax authorities of several countries warned of the dangers of NFT and Cryptocurrencies

The Joint Chiefs of Global Tax Enforcement (J5) statement details indications of the use of non-exchangeable Tokens (NFTs) and Cryptocurrencies for fraud and money laundering. If banks and law enforcement agencies detect such signs, they need to pay close attention to the participants in the transaction, check transactions and the sources of funds.

As the head of J5 and Deputy Commissioner of the Australian Taxation Office Will Day pointed out, the consortium plans to issue many more such documents in the future. The new guidelines will better combat tax crimes and money laundering through digital assets.

“Most Cryptocurrency owners and NFT buyers do it perfectly legitimately. But criminals are constantly looking for opportunities and ways to use new technology for their activities. Cryptocurrencies and NFTs are not immune to this”

the statement stresses

One of the red flags for banks and law enforcement should be the “networks” of Cryptocurrency addresses that are constantly exchanging cryptocurrencies and NFTs among themselves. Selling expensive NFTs for small amounts also looks suspicious. It is also important to keep an eye out for Tokens that are too expensive or too cheap and are constantly moving between addresses.

Recently, the International Monetary Fund (IMF) once again expressed concerns about the use of Cryptocurrencies by the Russians to circumvent sanctions.

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Written by Renat
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