What is sanctions screening for NFTs?

Sanctions screening for NFTs applies to both NFT marketplaces (platforms that facilitate NFT trading) and individual traders. The same OFAC rules that apply to fungible tokens apply to non-fungible tokens: transacting with a sanctioned wallet is prohibited regardless of the asset type.

NFT-specific risks

• Anonymous counterparties: NFT wallets are often pseudonymous, making sanctions screening more important — you may not know who is on the other side of the trade.
• Wash trading and sanctions evasion: NFTs have been used to move value between wallets in patterns designed to obscure the source of funds.
• Marketplace liability: Platforms that facilitate NFT trades between a buyer and a sanctioned seller may have facilitation exposure.