Educational paper suggests governments have to quiet attack public blockchains

A tutorial paper titled: “Reconciliation of Anti-Money Laundering Instruments and European Data Protection Requirements in Permissionless Blockchain Spaces” published within the Journal of Cybersecurity means that governments have to quiet target cryptocurrencies — especially privacy preserving chains — to fight money laundering.

The author of the paper outlined several programs of undermining believe in permissionless blockchains including 51% attacks, put suppression, and Sybil attacks — a own of malicious issue in which a single person creates extra than one accounts to govern a community. The author asserted:

“The users’ confidence within the networks may maybe per chance maybe be considerably undermined by profitable attacks on networks which would maybe maybe per chance also undermine the believe of the blockchain neighborhood within the flexibility of the community’s protocol to make particular comfy operation.”

Nonetheless, the paper also argued that these programs have to quiet fully be damaged-down as a “final resort” to fight money laundering after assorted policy initiatives such as blacklisting pockets addresses, flagging transactions, sanctions, and diverse laws were exhausted.

In the damage, any come taken have to quiet strive to balance the have to quiet be particular regulatory compliance below present laws, promote innovation, and the have to guard particular person person privacy, the author concluded.

Even supposing the paper became once published in 2021, its findings no longer too long ago came into sharper focal point after several users theorized that a few of the identical ways discussed are for the time being being damaged-down to govern the put of Monero (XMR) — a privacy-bettering cryptocurrency named within the educational paper.

Connected: Kraken to smash Monero enhance in European Economic Space

Money laundering: unbiased an excuse to impose tighter defend watch over?

In 2022, United Nations officers published that terrorist organizations predominantly use cash to finance illicit actions — an assertion later corroborated by a chronicle from the US Treasury, which stumbled on that criminal organizations resolve on fiat currency to crypto.

Furthermore, the Would possibly per chance well 2024 US Treasury chronicle also admitted that even when digital property were damaged-down for illicit actions, they tended to be damaged-down to perpetuate age-ancient schemes that may maybe even were dedicated utilizing cash or assorted asset classes.

Calm, this has no longer stopped the US authorities from cracking down on crypto mixers and diverse privacy-bettering tools. On Sept. 26, 2024, a US resolve dominated that the case in opposition to Twister Money co-founder Roman Storm may maybe per chance also stir forward.

The authorities crackdown on these privacy-bettering tools has sparked a debate about the viability of those products and services, as many users quiz whether or no longer crypto mixers can live to tell the tale below the present regulatory regime.

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