In its inaugural report on encryption, the EU Innovation Hub for Internal Security examined how privacy coins and mixing protocols are complicating regulatory efforts.
Data encryption can help balance individual privacy and collective security. However, cryptocurrency mixing protocols may face an uphill battle for legislative acceptance in Europe.
The EU Innovation Hub, a collaborative initiative involving members from European Union (EU) agencies and member states, has published its first report on encryption. The report emphasizes the "dual-use" nature of cryptographic technologies.
The report supported cryptocurrency and nonfungible tokens (NFT) inherent reliance on public-private cryptography for storage, mining and transfers. However, some bad actors use the system to evade law enforcement, specifically protocols and privacy coins that can “obscure” visibility on the blockchain.
