UK think tank: Banning crypto privacy tools would be counterproductive

The UK's Royal United Services Institute (RUSI) has argued that banning blockchain-based privacy tools would be counterproductive. In a report based on a public-private roundtable, RUSI stated that the growing role of privacy-related protocols and platforms within the cryptocurrency sector must be balanced with regulatory compliance goals. The institute warned that banning privacy solutions such as privacy pools or zero-knowledge proofs (ZK-proofs) would only make it more difficult to detect illicit activities. RUSI also called for enhanced cooperation between privacy tool developers and law enforcement agencies.