The EU Innovation Hub for Internal Security has released a report denouncing the utilization of privacy coins and cryptocurrency mixers, citing the challenges they pose for regulation and law enforcement. These tools obscure transaction trails, making it extremely difficult to monitor illicit activities. According to the report, mixers and privacy coins have been complicating tracing efforts for years, with newer technologies like Mimblewimble and zero-knowledge proofs further masking the visibility of cryptocurrency addresses, balances, and transactions. The EU Innovation Hub for Internal Security is a collaborative agency comprising members from various European agencies, established to provide solutions aiding internal security organizations in the EU and Member States. Their inaugural report delves into encryption technologies, exploring legislative, technical, and developmental perspectives. It emphasized the obstacles posed by privacy coins including Monero, Zcash, Grin, and Dash, along with mixing services and non-compliant crypto exchanges. The report underscored the emerging threats from technologies like Mimblewimble and zero-knowledge proofs which conceal transaction identities, making it challenging to trace and prevent illegal activities. While encryption technologies are crucial for securing digital assets, they can also be misused by criminals to evade detection. Despite the challenges, the report mentioned that law enforcement could still investigate and potentially track these activities with access to suspects' private keys. It advocated for a balanced regulatory approach that addresses security concerns without impeding technological innovation, striving for a harmonious balance between privacy and public safety.
EU Report Criticizes Privacy Coins and Cryptocurrency Mixers

by Giorgi Kostiuk
a year ago

Other news
Regulatory Scrutiny Heightens for Cryptocurrency Privacy Tools Post-Conviction

Regulatory scrutiny on cryptocurrency privacy tools is expected to increase following the conviction of William Bill Hill, potentially impacting developers and innovation in the sector.

Samourai Wallet Co-Founder Sentenced to Four Years in Federal Prison

William Hill, co-founder of Samourai Wallet, has been sentenced to four years in federal prison for operating an unlicensed money-transmitting business.

Monero Leads Privacy Coin Rally Amid Market Decline

Monero has emerged as a leading privacy coin, maintaining strong performance during the market downturn.

Ethereum and Major Altcoins Confirm First DAT Top in Three Months

Ethereum and major altcoins have confirmed their first Daily Average Trader (DAT) top in three months, indicating a potential bearish exhaustion pattern.

Best Wallet Token Surges as Investors Seek Self-Custody Solutions

Best Wallet Token (BEST) is gaining traction as investors seek self-custody tools alongside the new Solana ETFs.

Spark Protocol Shifts Focus from Mobile Apps to DeFi Infrastructure

Spark protocol has decided to abandon its mobile app launch to focus on developing DeFi infrastructure.

Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter