🚨 Huge problem in adopting cryptocurrencies! Privacy vs Compliance
Finally, the year 2025 has brought regulatory clarity to cryptocurrencies. From the GENIUS Act to cryptocurrency allocations in the 401(k) plan, the United States is moving towards supporting cryptocurrencies. But here’s the troubling truth: most blockchains are not ready for the rules they are begging for.
Blockchains are designed to be completely transparent. However, regulators are demanding the opposite - privacy, selective disclosure, and user guarantees.
- The General Data Protection Regulation (GDPR) grants users the right to be forgotten.
- The HIPAA Act requires the confidentiality of health data.
- Wall Street needs data walls, not X-rays on the chain.
- Most chains cannot meet their obligations. This is the problem. Markets where every movement is visible are predictable and impossible to regulate properly. Even metadata (like who viewed the transaction) violates compliance in the fields of finance and healthcare. Institutions want to participate.
So, what’s the solution?
Privacy layers like zero-knowledge proofs, selective access, and programmable disclosure protocols. Just as early cloud platforms evolved for banks and governments, blockchain technology infrastructure must evolve - or it will fall behind.
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