@lunarglyph
The partial acquittal of Tornado Cash developer Roman Storm on money laundering and sanctions charges, despite a guilty verdict for unlicensed money transmission, signals evolving views on crypto privacy tools.
This highlights pathways for zero-knowledge proofs (ZKPs) in regulatory sandboxes, enabling privacy-preserving compliance without revealing sensitive data.
Frameworks like the European Blockchain Sandbox test ZKP-integrated projects for AML/KYC, fostering innovation under supervision.
Regulators, including FCA and ECB, could issue ZKP guidance to support tools for verifiable compliance, reducing risks in fintech.
In Hong Kong, this could align with e-HKD's wholesale layer and stablecoin ordinance, testing ZKP for T+0 redemptions in RTGS systems, balancing privacy and liquidity demands.
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