Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Interlink and Blazpay Partner to improve the user experience in Web3 with AI

2025-05-19

All the reasons why the price of Bitcoin could be set for an explosive rally

2025-05-19

XRP – Price is struggling to keep the ground – breakdown or breathing break?

2025-05-19
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    Interlink and Blazpay Partner to improve the user experience in Web3 with AI

    2025-05-19

    Filmmaker David Goyer bets on blockchain for the next sci-fi franchise

    2025-05-19

    Jesse Pollak explains how Pectra Upgrade will overload the basic network

    2025-05-18

    Ice Open Network welcomes Soonchain AI in its online+ ecosystem to stimulate Web3 AI-Game Development

    2025-05-18

    Chainware and Karatdao work together to redefine security and identity in chains

    2025-05-18
  • NFT

    The most popular collections of the moment on blockchain

    2025-05-18

    Raoul Pal sees NFT market exploding when Ethereum Bull Cycle is approaching

    2025-05-17

    Ethereum is at the top of the charts in weekly NFT sales with $ 44.7 million in sales volume

    2025-05-16

    Founder wallet emptied while he leaves

    2025-05-15

    British Museum puts sculptures from Dürer’s ‘Rhinoceros’ on Bitcoin Blockchain

    2025-05-14
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    XRP – Price is struggling to keep the ground – breakdown or breathing break?

    2025-05-19

    The American stock market now looks more favorable than pre-trade war, according to Tom Lee from Fundstrat-Dit why is why

    2025-05-18

    Michael Burry van Big Short abruptly sells one ‘recession-proof’ assets

    2025-05-17

    $ 40 billion in XRP on the road – where are they going?

    2025-05-17

    Bitcoin who sees heavy accumulation on Coinbase and Binance, says analysis company Glassnode – here is the prospects

    2025-05-17
  • Learn

    Types of Blockchain Layers Explained: Layer 0, Layer 1, Layer 2 and Layer 3

    2025-05-16

    Token vs. Coin: Key Differences You Must Know as a Beginner

    2025-05-15

    Inside Changelly: 10 years of steadfast support and compliance

    2025-05-15

    What Is Proof-of-Work (PoW)?

    2025-05-12

    What Is Proof-of-Authority (PoA)?

    2025-05-10
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Regulation»European legal authorities express their concerns about privacy coins, Layer-2 networks and crypto mixers
European law authorities raise concerns over privacy coins, Layer-2 networks and crypto mixers
Regulation

European legal authorities express their concerns about privacy coins, Layer-2 networks and crypto mixers

2024-06-11No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

The EU Innovation Hub for Internal Security has released its first comprehensive report on encryption, with a significant focus on crypto-related issues.

The report, a collaboration between Europol, Eurojust and other EU agencies, examines how cryptocurrencies are impacting law enforcement efforts.

It highlights the significant gaps in law enforcement agencies’ ability to detect and recover illicit digital assets moved through decentralized methods such as privacy coins, layer 2 networks and crypto mixers.

Crypto and law enforcement

According to the report, cryptocurrencies, which rely heavily on public-private key cryptography, pose unique challenges and opportunities for law enforcement.

The report outlines how cryptocurrencies are increasingly being used to launder criminal proceeds, complicating efforts to track illicit funds. The rise of privacy-enhancing technologies such as zero-knowledge proofs (ZKP) and Layer-2 (L2) networks could further obscure the origins and movements of these funds.

The report states that law enforcement can currently only recover funds moved through custodial wallets – where users do not have their own private keys – by working with exchanges and service providers to seize cryptocurrencies suspected of criminal activity.

This collaboration is critical given the stringent user identification (know-your-customer, or KYC) measures imposed by anti-money laundering regulations. However, illicit funds sent through decentralized wallets and addresses remain beyond the reach of law enforcement due to the enhanced privacy these technologies provide.

Technological advancement and data misappropriation

The report highlighted several improvements that make tracking crypto transactions more difficult. Privacy coins like Monero obscure transaction details and present significant tracking problems, despite being less popular than Bitcoin among criminals.

See also  Taiwan is introducing a bill that aims to create a regulatory framework for crypto

Meanwhile, cryptocurrencies such as Dash and Litecoin offer optional encryption features that increase transaction obfuscation. Mimblewimble, a protocol used by Grin and Beam, hides transaction data and uses aggregated authentication techniques.

ZKPs, used by currencies like Zcash and mixing services like Tornado Cash, verify transactions without revealing details, which poses significant tracking issues.

Additionally, L2 solutions such as the Lightning Network for Bitcoin create payment channels that do not broadcast all transactions to the blockchain, complicating law enforcement tracking efforts.

Future steps

The report noted the dire need for law enforcement to keep pace with technological developments, emphasizing that access to suspects’ private keys is critical to overcoming encryption challenges.

The report also urged government agencies to improve technical capabilities and promote closer cooperation with crypto exchanges and custodial wallet providers, which are essential for effectively tackling the misuse of digital assets for criminal purposes.

The report called for continued research into “user-controlled” encryption and its impact on digital forensics and decryption capabilities. It also highlighted the potential of quantum computing to revolutionize cryptographic protocols and said EU funding schemes are crucial to supporting research projects to tackle these challenges.

The report urged policymakers to prioritize funding to increase law enforcement’s ability to combat the misuse of cryptocurrencies.

Mentioned in this article
Last Alpha Market report

Source link

authorities Coins Concerns Crypto European express layer2 Legal mixers Networks privacy
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Mastermind Behind Sec Sim -exchange schedule sentenced to 14 months in prison for manipulating Bitcoin price

2025-05-18

Capital One pays $ 425,000,000 to customers after they have reportedly cheated customers from a higher return on bank balance

2025-05-18

Myth or reality? Mica and its real impact on the market that dissolve common misconceptions

2025-05-18

Judge denies joint bid from Ripple and the SEC to end their long -term legal battle to end XRP

2025-05-17
Add A Comment

Comments are closed.

Top Posts

Gold is ‘probably going higher’, says macro guru Raoul Pal – but there’s a catch

2024-11-25

Over 75 Million Ordinal Entries and $4.5 Billion in Sales: Bitcoin Finds Its NFT Base

2024-09-19

Kadena’s Crankk brings improvements to IoT

2023-06-09
Editors Picks

Here’s how Bitcoin could witness a complete reversal to a new all-time high, according to analyst

2023-06-07

Trust Wallet fixes vulnerability that led to $170,000 in user losses

2023-04-29

Assessment of Lido’s dominance in the LSD sector

2023-12-23

Bitcoin Funding Rate Signals $65K Breakout – Real Possibility?

2024-09-12
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Interlink and Blazpay Partner to improve the user experience in Web3 with AI

All the reasons why the price of Bitcoin could be set for an explosive rally

XRP – Price is struggling to keep the ground – breakdown or breathing break?

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$103,177.10-0.74%
  • ethereumEthereum(ETH)$2,403.10-4.73%
  • tetherTether USDt(USDT)$1.000.01%
  • rippleXRP(XRP)$2.29-4.57%
  • binancecoinBNB(BNB)$638.76-1.33%
  • solanaSolana(SOL)$161.73-5.82%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.216154-3.56%
  • cardanoCardano(ADA)$0.72-5.77%
  • tronTRON(TRX)$0.262843-3.63%
  • suiSui(SUI)$3.69-4.03%
  • chainlinkChainlink(LINK)$15.17-4.32%
  • avalanche-2Avalanche(AVAX)$21.62-7.06%
  • hyperliquidHyperliquid(HYPE)$25.96-3.67%
  • stellarStellar(XLM)$0.278697-4.69%
  • shiba-inuShiba Inu(SHIB)$0.000014-4.98%
  • unus-sed-leoUNUS SED LEO(LEO)$8.62-1.01%
  • hedera-hashgraphHedera(HBAR)$0.187061-4.27%
  • bitcoin-cashBitcoin Cash(BCH)$381.17-5.03%
  • the-open-networkToncoin(TON)$3.01-3.48%
  • litecoinLitecoin(LTC)$95.17-4.01%
  • polkadotPolkadot(DOT)$4.48-6.48%
  • moneroMonero(XMR)$344.25-0.28%
  • bitget-tokenBitget Token(BGB)$5.181.04%
  • daiDai(DAI)$1.00-0.03%
  • pepePepe(PEPE)$0.000013-3.59%
  • piPi(PI)$0.73-2.91%
  • ethena-usdeEthena USDe(USDE)$1.00-0.02%
  • uniswapUniswap(UNI)$5.73-4.73%
  • bittensorBittensor(TAO)$397.13-7.72%
  • nearNEAR Protocol(NEAR)$2.70-3.85%
  • aaveAave(AAVE)$217.51-4.90%
  • aptosAptos(APT)$4.95-5.76%
  • okbOKB(OKB)$52.02-2.17%
  • ondo-financeOndo(ONDO)$0.90-4.74%
  • kaspaKaspa(KAS)$0.105771-5.60%
  • internet-computerInternet Computer(ICP)$5.05-4.81%
  • ethereum-classicEthereum Classic(ETC)$17.66-4.86%
  • gatechain-tokenGateToken(GT)$21.38-1.28%
  • crypto-com-chainCronos(CRO)$0.094789-4.72%
  • official-trumpOFFICIAL TRUMP(TRUMP)$12.57-4.13%
  • mantleMantle(MNT)$0.73-0.96%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.231048-3.77%
  • vechainVeChain(VET)$0.027186-5.10%
  • render-tokenRender(RENDER)$4.41-6.16%
  • usd1World Liberty Financial USD(USD1)$1.00-0.02%
  • ethenaEthena(ENA)$0.352443-8.64%
  • filecoinFilecoin(FIL)$2.79-4.06%
  • cosmosCosmos(ATOM)$4.71-2.73%
  • algorandAlgorand(ALGO)$0.213484-4.54%
  • bitcoinBitcoin(BTC)$103,177.10-0.74%
  • ethereumEthereum(ETH)$2,403.10-4.73%
  • tetherTether USDt(USDT)$1.000.01%
  • rippleXRP(XRP)$2.29-4.57%
  • binancecoinBNB(BNB)$638.76-1.33%
  • solanaSolana(SOL)$161.73-5.82%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.216154-3.56%
  • cardanoCardano(ADA)$0.72-5.77%
  • tronTRON(TRX)$0.262843-3.63%
  • suiSui(SUI)$3.69-4.03%
  • chainlinkChainlink(LINK)$15.17-4.32%
  • avalanche-2Avalanche(AVAX)$21.62-7.06%
  • hyperliquidHyperliquid(HYPE)$25.96-3.67%
  • stellarStellar(XLM)$0.278697-4.69%
  • shiba-inuShiba Inu(SHIB)$0.000014-4.98%
  • unus-sed-leoUNUS SED LEO(LEO)$8.62-1.01%
  • hedera-hashgraphHedera(HBAR)$0.187061-4.27%
  • bitcoin-cashBitcoin Cash(BCH)$381.17-5.03%
  • the-open-networkToncoin(TON)$3.01-3.48%
  • litecoinLitecoin(LTC)$95.17-4.01%
  • polkadotPolkadot(DOT)$4.48-6.48%
  • moneroMonero(XMR)$344.25-0.28%
  • bitget-tokenBitget Token(BGB)$5.181.04%
  • daiDai(DAI)$1.00-0.03%
  • pepePepe(PEPE)$0.000013-3.59%
  • piPi(PI)$0.73-2.91%
  • ethena-usdeEthena USDe(USDE)$1.00-0.02%
  • uniswapUniswap(UNI)$5.73-4.73%
  • bittensorBittensor(TAO)$397.13-7.72%
  • nearNEAR Protocol(NEAR)$2.70-3.85%
  • aaveAave(AAVE)$217.51-4.90%
  • aptosAptos(APT)$4.95-5.76%
  • okbOKB(OKB)$52.02-2.17%
  • ondo-financeOndo(ONDO)$0.90-4.74%
  • kaspaKaspa(KAS)$0.105771-5.60%
  • internet-computerInternet Computer(ICP)$5.05-4.81%
  • ethereum-classicEthereum Classic(ETC)$17.66-4.86%
  • gatechain-tokenGateToken(GT)$21.38-1.28%
  • crypto-com-chainCronos(CRO)$0.094789-4.72%
  • official-trumpOFFICIAL TRUMP(TRUMP)$12.57-4.13%
  • mantleMantle(MNT)$0.73-0.96%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.231048-3.77%
  • vechainVeChain(VET)$0.027186-5.10%
  • render-tokenRender(RENDER)$4.41-6.16%
  • usd1World Liberty Financial USD(USD1)$1.00-0.02%
  • ethenaEthena(ENA)$0.352443-8.64%
  • filecoinFilecoin(FIL)$2.79-4.06%
  • cosmosCosmos(ATOM)$4.71-2.73%
  • algorandAlgorand(ALGO)$0.213484-4.54%