What a difference a global sensation can make: ‘NFTs’ (non-tangible tokens) have gone from a relatively obscure acronym to a 24/7 obsession in the art world and beyond.
While interested observers struggle to come to terms which what NFTs actually are and the tax implications they carry, the shift has prompted many questions – from inherent value, to authenticity, and associated security risks.
Artnet News approached the experts- ArtAML Co-Founder & CEO Susan J Mumford among them, to shed some light on how regulators are responding to the latest investment craze, and address the following:
- Do you have to pay taxes on an NFT?
- Does it matter if the token is ‘stored’ in the US or abroad?
- What impact do recently tightened anti-money laundering rules have on the trade?
When asked about the impact of the latest anti-money laundering regulations, 5MLD, on NFT sales, Susan concluded the article as such:
“NFTs are a type of cryptoasset that don’t fall under the definition of ‘work of art’ in the UK’s money laundering regulations. NFTs effectively mimic cryptocurrencies and could be used in similar ways, leading to similar risks.”