Summary
- The UK’s Royal United Services Institute (RUSI) said an outright ban on blockchain-based privacy tools could backfire.
- RUSI said that as privacy protocols and platforms play a growing role in the crypto ecosystem, regulation needs to be balanced with compliance objectives.
- The report said it is preferable to bring privacy technologies—such as Privacy Pools, zero-knowledge proofs, and mixing services—into a transparent cooperative framework rather than driving them underground.
Forecast Trend Report by Period
The UK’s Royal United Services Institute (RUSI) said that moves to ban blockchain-based privacy tools could instead prove counterproductive.
According to Decrypt, a crypto-focused media outlet, RUSI released a report based on a roundtable involving public- and private-sector experts, saying that as the role of privacy protocols and platforms in the crypto ecosystem grows, a balance is needed with regulatory compliance objectives.
The report warned that an outright ban on privacy solutions such as Privacy Pools or zero-knowledge proofs (ZK-proofs) could make it harder to detect illicit activity, adding that bringing the technology into a transparent cooperative framework is preferable to driving it underground.
RUSI also recommended strengthening cooperation between privacy-tool developers and law enforcement agencies to achieve both compliance and innovation.
The report comes as some countries have recently moved to tighten regulations on mixing services and privacy technologies, and has been seen as reigniting the debate over balancing privacy with crime enforcement.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
