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The Unique AML Challenges of the NFT Market

The high-value and speculative nature of the NFT market makes it a target for value laundering. Illicit funds can be used to purchase digital art, which is then sold to a collaborator to create clean proceeds. Platforms and participants must be vigilant to this threat, especially for high-profile sales. Screening the wallets involved in significant NFT transactions is a necessary protective measure. As regulatory attention grows, this will become standard practice. Always perform an aml check before engaging in a major NFT purchase or sale.