EU Report Highlights Challenges for Cryptocurrency Regulation
To uphold people’s rights and international security against crime, it is necessary to balance these with data encryption even though getting legislation approved for cryptocurrency mixing protocols in Europe seems like an impossible task.
A detailed report has been released by the EU Innovation Hub, which is made up of different member states and agencies within the EU. This reflects on cryptographic technology being dual-purpose.
While public-private key pairings are heavily relied upon by cryptocurrencies (as well as non-fungible tokens or NFTs), they can also be used for wrongdoings where some methods or coins protect transaction details from being seen on a distributed ledger system like the blockchain.
According to six security bodies under EU law authoring this paper there have been recent examples such as a finding against Alexey Pertsev who was found guilty of laundering money; these demonstrate what might happen if developers that work in an open-source environment do not take care about their actions.
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Nevertheless Tornado Cash operates without control from third parties however with what has happened it shows why people should worry about it even more so now than ever before.
Following an incident where someone took advantage of vulnerabilities across bridges between different blockchains a total amount equivalent to $47,700,000 was stolen through Tornado Cash indicating continued difficulties around securing cryptocurrencies and regulating the crypto landscape.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
