Without a doubt, 2021 was the year when the crypto market made its greatest strides, reaching an estimated USD 3 trillion. It was also the year when non-fungible tokens (NFTs) gained massive popularity. Given the enormous profit potential coming from trading these assets, NFTs have received the attention of regulators, opening a debate about whether NFTs are securities and whether financial regulations designed for tradable financial assets should apply to NFTs. Snežana Gebauer and Christopher Walsh discuss the NFT trend and how to avoid compliance pitfalls in Cryptonews.
NFTs are the latest digital asset to come under scrutiny for compliance issues, including insider trading risks. What can the NFT ecosystem learn from the larger financial system about staying in compliance?