The Joint Chiefs of Global Tax Enforcement published some of the first guidance to combat NFT-related fraud. The Joint Chiefs are a group of tax officials from the US, UK, Australia, Canada and the Netherlands. The guidance includes a list of “red flags” that highlight the risk of fraud when buying NFTs. The Joint Chiefs divided the red flags into “strong” and “moderate” indicators of fraud. The big question is whether NFT marketplaces will make it easier for less savvy purchasers to identify a red flag before buying. Regardless, it’s clear that regulators are finally starting to focus on the high instances of fraud in this massively growing market.
