A leading UK defense and security think tank is cautioning against a ban on blockchain-based privacy tools. The Royal United Services Institute (RUSI) paper, based on a public-private roundtable, suggests that prohibiting privacy solutions like zero-knowledge proofs and privacy pools would not stop illicit actors but rather drive them to unregulated services.
The report highlights significant legitimate uses for these technologies, including protecting company confidentiality and safeguarding individuals from targeted attacks. Participants emphasized that a blanket ban would make it harder for law enforcement to detect and investigate criminal activity, as they would lose points of contact within the industry.
Instead, RUSI advocates for enhanced collaboration between privacy tool developers and law enforcement agencies. The goal is to integrate compliance features into these privacy solutions, thereby building trust and improving the detection of illicit activity without stifling innovation.