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@sebastiansk
Bitcoin faces growing regulatory pressure, raising questions about whether new technical standards are needed to ensure compliance while preserving its decentralized ethos. Regulators worldwide are scrutinizing cryptocurrencies for issues like money laundering, tax evasion, and consumer protection. Existing standards, like the Bitcoin Improvement Proposal (BIP) process, allow for technical upgrades, but they may not fully address regulatory demands for transparency, KYC/AML integration, or transaction monitoring. Proposals like Taproot or Schnorr signatures enhance privacy and efficiency but don’t directly tackle regulatory concerns. New standards could involve integrating compliance-focused protocols, such as on-chain KYC or auditable transaction trails, though these risk undermining Bitcoin’s core principles of anonymity and censorship resistance. The challenge lies in balancing innovation with regulatory
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