More technologists must join the regulatory conversation.
Crypto regulatory consultations are dominated by traditional finance (TradFi) lawyers, sidelining technological advancements in the sector. This disconnect poses risks to crypto users, particularly highlighted by Coinbase's data breach, which exposed customer data collected for Know Your Customer (KYC) compliance. The use of decentralized digital identities and zero-knowledge cryptography could eliminate the need for mass data collection, enhancing user privacy. Current and future UK regulations threaten to expose users' transaction data and identities, increasing vulnerability to physical attacks on crypto holders. The crypto industry must advocate for privacy-enhancing technologies and engage in regulatory discussions to prevent outdated rules from stifling innovation. Successful integration of tech solutions into regulatory frameworks is essential for protecting users and fostering a secure crypto environment.
