HMRC NFT seizures

HMRC has reportedly been the first UK law enforcement authority to seize cryptoassets in the form of three digital artwork non-fungible tokens (NFTs). Alongside the NFTs HMRC has reportedly also seized other types of cryptoassets. These seizures were all part of an investigation into suspected VAT fraud thought to be worth £1.4m.

Interestingly while the seized non-NFT cryptoassets are said to be worth around £5 000 the three digital artwork NFTs are yet to be valued. The crypto market is well known for its volatility and NFTs are notoriously hard to value. As such this could be an interesting exercise. However what can be said with certainty is that the NFT market itself is huge and expanding. Indeed sales reportedly surpassed $25bn in 2021 compared to $95m the year before.

It should be noted that this is not the first time...