The Joint Chiefs of Global Tax Enforcement (J5) have released an intelligence bulletin called the “J5 NFT Marketplace Red Flag Indicators” that warns banks, law enforcement personnel and private citizens about the dangers of non-fungible tokens (NFTs), according to an agency press release.
The document “lists items that should draw concern when one is dealing with NFTs or planning to purchase one” from the five countries in the J5 — Australia, Canada, the Netherlands, the United Kingdom and the United States — based on their dealings with NFTs in various federal and international investigations, the release stated.
“This space is changing so fast and technologies and products have the ability to become the ‘next big thing’ without any due diligence or regulation on the part of the creator of the product,” said J5 Crypto Group Lead and Special Agent Oleg Pobereyko in the release. “We tried to put together a product that would help keep people safe while law enforcement catches up to these particular concerns.”
The red flags with crypto aren’t restricted to the U.S.; there are international issues as well.
“Cryptocurrency is growing in popularity in Australia, with many choosing to invest as part of their portfolio,” said Australian Taxation Office Deputy Commissioner and J5 Chief Will Day in the release. “This paper provides a suite of indicators that financial institutions can reference to help them identify illicit financial activity concerning NFTs.”
The J5’s goal is boost collaboration to fight international tax crime. Next month, J5 members will gather in London, England, for a variety of meetings, including the J5 Challenge. The event brings together experts from each country to optimize data from a variety of open and investigative sources available to each country, including offshore account information, according to the release.
Meanwhile, Goldman Sachs’ interest in the potential uses of cryptocurrency beyond simply buying and selling cryptos like bitcoin continues to grow, meaning the tokenization of real assets using NFTs has great potential.
Read more: Goldman’s Interest in NFTs Could Speed the Tokenization of Real Assets
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