What is an NFT?

An NFT is a non-fungible unit of data stored on a Blockchain, a unique type of digital content that can be sold and exchanged. NFT data unit types can be associated with digital files such as photos, videos, and audio. 

NFT AML Reports

Art has long been a money-laundering tool for criminals. NFTs can be used for money laundering purposes as they essentially have common characteristics with traditional art but they are easier to transfer due to their digital form. Also, NFT trading offer enhanced pseudonymity with the use of blockchains.

Basically, NFTs can be attractive for money laundering because they:

• Are easily transferable between wallets;
• Offer enhanced pseudonymity without the need for KYC;
• Are highly speculative and have volatile prices.

Scorechain can provide AML reports for NFT projects who are willing to become compliant and prevent money laundering during the minting phase. This guarantees that the buyers of the NFTs are using clean funds and validates the profile.

In these reports, Scorechain provides insightful analysis about the origin of crypto in order to identify relations with illegal activities such as hacks, phishing, dark web marketplaces, etc.