EU Innovation Hub: Crypto Make Funds Tracing Difficult

News
Reading Time: < 1 minute

Utilizing data encryption can help find a balance between protecting individual privacy and maintaining collective security. However, regulations in Europe may make it difficult for cryptocurrency mixing protocols to gain acceptance.

The EU Innovation Hub, which consists of members from various European Union organizations and countries, recently released a report on encryption.

The report highlights how cryptographic technologies can have both positive and negative impacts. The report acknowledges the dependence of cryptocurrencies and non-fungible tokens (NFTs) on public-private cryptography for functions like storage, mining, and transfers.

However, some individuals may use these technologies to evade law enforcement, particularly through protocols and privacy coins that hide activity on the blockchain.

The EU Innovation Hub specifically mentions cryptocurrencies like Monero and Zcash, as well as layer-2 initiatives, zero-knowledge proofs, crypto mixing services, and non-compliant crypto exchanges as making it easier for individuals to launder illegal funds.

If you like our content and want to support us, please follow us on X, Facebook and Instagram and don’t miss the latest news!