Preventing Financial Crime: Anonymous crypto tools can be exploited for money laundering, terrorism financing, and tax evasion. By banning privacy coins and untraceable wallets, regulators aim to close loopholes exploited by criminals.
Consumer Protection: Oversight can reduce scams, protect retail investors, and help victims trace stolen or lost funds. It creates a safer financial environment for the average user.
Regulatory Consistency: The same standards apply to banks and traditional financial institutions. Extending them to crypto aligns the two systems and promotes fairness and trust.