The report was prepared by six members of the EU Innovation Centre for Internal Security: Europol, Eurojust, the Directorate General of the European Commission for Migration and Internal Affairs, the Joint Research Centre of the European Commission, the Coordinator of the European Council for Combating Terrorism and the European Union Agency for Internal Security.
The report of the EU Innovation Center highlights the "dual" nature of cryptographic technologies, which allows attackers not only to use illegal methods to conceal criminal proceeds, but also to avoid sanctions from law enforcement agencies.
"Digital asset mixers, confidential coins, and zero-disclosure protocols can hide the visibility of addresses, balances, and cryptocurrency transactions from government regulators. These services have been complicating law enforcement procedures for tracking criminal transactions and countering fraud for many years, and therefore will face an uphill struggle for legislative recognition in Europe," the EU Innovation Center said in a report.
In addition to mixing services popular in the crypto community and zero-disclosure proof projects, the EU Innovation Center highlighted digital assets such as Monero, Zcash, Grin and Dash.
Recall that at the end of April, the European Parliament approved new Anti-Money Laundering (AMLR) Regulations, which tighten control in the field of digital assets over crypto service providers and users, and also provide for a ban on anonymous transactions using custodial wallets and confidential assets.