Category: Business

  • Why is Hyperliquid Price Rallying Amid the US-Iran War

    Hyperliquid emerged as a rare winner amid the sudden escalation of military hostilities in the Middle East between the US, Israel, and Iran.

    This weekend, the exchange saw a surge in commodities-focused derivatives trading, with open interest for these assets reaching an all-time high of more than $1.1 billion.

    Hyperliquid Rallies 13% as US and Iran Tensions Roil Markets

    The uptrend can be attributed to traders seeking to hedge geopolitical risks while traditional financial markets were closed for the weekend.

    As a result, market participants pivoted to the blockchain-based platform to trade synthetic perpetual futures contracts tied to oil, gold, silver, and US equities.

    This continuous trading was facilitated by HyperLiquid Improvement Proposal 3, or HIP-3, an upgrade implemented last year.

    HIP-3 allows developers to deploy permissionless perpetual futures markets for any asset with a reliable public price feed, provided the creator stakes 500,000 of the platform’s native $HYPE tokens.

    Driven by the weekend volatility, HIP-3’s open interest eclipsed its previous record of $1.06 billion.

    Hyperliquid's HIP-3 Platform's Open Interest.

    Hyperliquid’s HIP-3 Platform’s Open Interest. Source: Flowscan

    Overall, the broader Hyperliquid platform has accumulated nearly $5.5 billion in total open interest, securing an estimated $1.06 million in protocol earnings over a 24-hour period, according to data from DeFiLlama.

    Additionally, data provider Messari reported that HIP-3 markets have generated $4.4 billion in weekend trading volume in February alone.

    Hyperliquid’s HIP-3 markets have seen $4.4B in weekend-traded volume so far in February while the CME and Nasdaq are closed. https://t.co/tiurdKNhSK pic.twitter.com/pdoOYjrwfk

    — misery (@zcb_spec) February 28, 2026

    The platform’s ability to capture traditional market volume drew the attention of prominent industry figures. Arthur Hayes, co-founder of the crypto exchange BitMEX, highlighted the structural shift on the social media platform X.

    “Where price discovery happens when TradExchanges sleep…It’s the weekend, [stuff’s] going down, TradExchanges are closed, but Hyperliquid is open for business,” Hayes wrote.

    However, the platform’s lack of compliance guardrails could introduce substantial legal hurdles in the future.

    Offering synthetic US equities to retail investors without “know your customer” (KYC) protocols or a registered broker-dealer license poses significant regulatory risks.

    These practices could draw future scrutiny from the Securities and Exchange Commission and the Commodity Futures Trading Commission

    Despite this looming threat, the platform’s native token responded positively to the weekend influx.

    BeInCrypto data show that $HYPE’s price rose 13% over the last 24 hours, trading above $30 as of press time. Notably, this makes it the best-performing asset among the top 20 cryptocurrencies by market capitalization.

    The post Why is Hyperliquid Price Rallying Amid the US-Iran War appeared first on BeInCrypto.

  • Ethereum Tokens Swiped, Returned After South Korean Tax Service Publishes Wallet Seed Phrases

    Ethereum Tokens Swiped, Returned After South Korean Tax Service Publishes Wallet Seed Phrases

    In brief

    • The South Korean National Tax Service (NTS) shared seed phrases from seized crypto wallets in a press release.
    • The contents of the wallets—valued around $4.8 million at face value—were then swiped, but returned.
    • The token was highly illiquid, and the perpetrator would not have been able to get anywhere near the face value.

    The first rule of self-custodying crypto is that you do not tell anyone your seed phrase—a set of 12 or 24 words that unlocks the private key to the wallet, therefore enabling control of the digital assets inside.

    South Korea’s National Tax Service (NTS) broke that rule in a very public fashion this week, publishing a photo of hand-written seed phrases in a press release and enabling an unidentified actor to make off with tokens valued at $4.8 million at face value, according to a local news report from Maeli Business Newspaper. But the highly illiquid tokens have since been returned.

    The incident occurred after the NTS completed a search and seizure of high-value tax delinquents and subsequently photographed some of its haul to share in a press release. In that release, one individual’s lot, labeled as “Case 3,” included multiple Ledger hardware devices and their respective seed phrases, according to the report. 

    “This is like advertising to open your wallet and take your money,” Professor Cho Jae-woo of Hansung University told the publication.

    Upon publication of the release, an individual did just that, pulling contents from at least three wallets into an Ethereum address ending in “86c12” before transferring them again. 

    On-chain data shows that three distinct addresses holding a total of 4 million Pre-Retogeum (PRTG)—valued at $4.8 million based on the token’s current price—were funded with a negligible amount of Ethereum to cover transaction fees before the user transferred their respective PRTG tokens to “86c12.”

    The three addresses, which have not made any transactions since January 2023, held 40% of the total supply of the PRTG token—a defunct Ethereum-based token that boasts only 1,500 holders and 1,600 transfers all-time. 

    While initial reports noted the token’s $4.8 million face value, if the thief tried to sell these tokens, they would have not been able to recoup anywhere near that amount given very limited liquidity. The token lists no trading pairs on decentralized exchanges, and is only listed on one centralized exchange—MEXC—where it registered 24-hour volumes of only $332. 

    According to CoinGecko, the exchange’s liquidity for the PRTG-USDT trading pair is so small that only $59 in volume would send the price down 2%. For comparison, to move Bitcoin down 2% down on MEXC, a trader would need to sell around $2.6 million worth of the top crypto coin.

    Perhaps that understanding is why on Friday morning, about 20 hours after initially moving the PRTG tokens, an address tied to the original “86c12” address transferred all the tokens back to their original wallets

    The hiccup is just the latest in a string of apparent crypto blunders for officials in South Korea. Earlier this week, it was discovered that $1.4 million in BTC went missing four years ago thanks to police not adhering to proper crypto custody guidelines. 

    Plus, South Korean regulators have come under fire after not finding an internal flaw in crypto exchange Bithumb’s system, which led to the firm erroneously distributing $43 billion worth of Bitcoin to users earlier this month rather than sending them small amounts of South Korean won.

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  • Trump Media Weighs Truth Social Spinoff Following Bitcoin, Crypto ETF Moves

    Trump Media Weighs Truth Social Spinoff Following Bitcoin, Crypto ETF Moves

    In brief

    • Trump Media and Technology Group (DJT) is considering spinning off its social media platform, Truth Social.
    • Shares of the new entity would be provided to DJT holders prior to the firm’s planned merger with TAE Technologies.
    • Details about the impact to the firm’s Bitcoin holdings or crypto initiatives remain unclear.

    Trump Media and Technology Group (DJT) is considering spinning off Truth Social—its free speech-focused social media platform championed by President Donald Trump—into its own public entity, the firm announced on Friday. 

    The move would see Truth Social and other Trump Media businesses become SpinCo, which would then merge with Texas Ventures III. However, some assets and businesses would remain with the Trump Media, though the firm did not indicate which.

    Shares of the new entity would be provided to DJT shareholders prior to the firm’s announced merger with TAE Technologies, a power fusion firm that is still in a pending merger with the Trump Media.

    “The contemplated transaction is intended to create shareholder value through the creation of pure play companies, each with distinct strategies,” the firm’s announcement reads. 

    The news did not immediately register any positive impacts for DJT shareholders though. Shares in the firm are down around 2.10% today as broader markets decline. It has now fallen around 40% in the last six months, recently changing hands around $10.73. 

    While the comment above might suggest that Trump Media’s crypto initiatives would remain alongside Truth Social, details about its crypto-related plans were not immediately clear. A representative for the firm did not immediately respond to Decrypt’s request for comment. 

    Last year the firm sought to “protect itself from discrimination from financial institutions” by adding $2 billion in Bitcoin and Bitcoin-related securities to its balance sheet. 

    It also filed for a Bitcoin ETF last June and later a crypto blue chip ETF, which includes other tokens like Ethereum, Solana (SOL) and Ripple-linked XRP. 

    The firm signaled its intent to bolster its crypto ETF offerings earlier this year, filing for a joint Truth Social-branded Bitcoin and Ethereum ETF, as well as one centered on the Crypto.com-linked token, CRO.

    It is also working with Crypto.com on a digital token that would be airdropped to Trump Media shareholders as it seeks to adopt crypto rails across its business. The deadline for broker participants to provide information on shareholders passed earlier this month, though the token has not yet been distributed.

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  • Bitcoin Derivatives Market Undergoes Panic Selling Amid Escalating Geopolitical Tensions

    Bitcoin Derivatives Market Undergoes Panic Selling Amid Escalating Geopolitical Tensions

    The Bitcoin ($BTC) ecosystems going through a turbulent phase amid the growing panic selling. In this respect, the surging tensions between the U.S. and Iran have raised the selling volume of the Bitcoin ($BTC) derivatives to nearly $1.8B just in 1 hour. As per the data from CryptoQuant, this signifies aggressive sell orders across the market. So, such a sudden liquidation wave reflects the significant role of geopolitical instability in shaping the outlook of the digital asset landscape.

    Panic selling accelerates across derivatives amid rising tensions between the U.S. and Iran

    “Within a single hour this morning, sell volume surged by approximately $1.8B, reflecting aggressive market sell orders hitting the books.” – By @Darkfost_Coc pic.twitter.com/17ohsNw3Yh

    — CryptoQuant.com (@cryptoquant_com) February 28, 2026

    Bitcoin Derivatives Sector Experiences Sheer Dip from 30% to 18% as U.S.-Iran Conflict Worsens

    The on-chain data suggests that the Bitcoin ($BTC) derivatives sell volume has hit the staggering $1.8 mark within one hour. This sheer rise in selling pressure shows a huge impact on trader behavior within the crypto markets. Hence, the derivatives pressure index has reportedly witnessed a sharp decline from thirty percent to eighteen percent. This imbalance highlights a clear dominance of the seller in the market while short-term risk aversion is at its peak.

    Aggressive Panic Selling Increases Concerns over Continuation of Downturn

    According to CryptoQuant, the escalation of the U.S.-Iran conflict has fueled fear-led trading behavior. As a result of this, the derivatives markets have plunged into a panic-driven mode. At the same time, Bitcoin’s price has also dropped to nearly $60K, raising concerns among the traders. Keeping this in view, amid the choppy market conditions led by uncertainty, fear, and volatility, $BTC will likely remain down, requiring careful positioning as well as keen sentiment monitoring.

  • XRP Ledger Dev Raises Alert on Fake ‘Passes’ Scam Targeting Wallets

    XRP Ledger Dev Raises Alert on Fake ‘Passes’ Scam Targeting Wallets

    $XRP Ledger developer and Xaman founder Wietse Wind has issued an alert to the $XRP community regarding scams targeting wallet holders.

    In such scams, the scammer sends fake NFTs with the intent of making an offer to an unsuspecting victim to trade something in return. According to recent reports, scammers pry at offers made from wallets for NFTs, copy or duplicate and mint from another wallet to offer to unsuspecting users for sale.

    WARNING!! 🚨

    We are *NOT* sending “passes” or $NFT‘s!

    These are sent by SCAMMERS!!

    Do not engage, do not accept, CANCEL their offer.

    Please RT far and wide. pic.twitter.com/cYQkceqwzV

    — Wietse Wind – 🪝🛠 Xaman® + XRPL + Xahau (@WietseWind) February 28, 2026

    In another such scam attempt, a scammer creates a website with a fake Xaman domain and sends an offer, a pass to join a closed Xaman beta.

    In this light, Wind flagged a fake Xaman $NFT in a recent tweet, warning the $XRP community that the wallet provider is not sending “passes” or “NFTs.” These, he stated, are being sent by scammers.

    Wind urges $XRP holders to cancel such offers and never engage or accept. As fake $NFT offers proliferate, users are urged to exercise caution and verify wallet addresses of artists and projects before accepting any offer.

    This follows similar warnings in recent times to $XRP wallet holders. Fake support accounts are flagged as one of the more common XRPL scam vectors. Genuine support will never ask for seed phrases or for users to sign a transaction or “verify” their wallets and does not contact users via X, Discord or unsolicited DMs.

    Wind shares a few tips to stay safe for $XRP users: they should never engage with anything they do not trust, never accept offers they did not ask for or do not understand, use only in-app support, never share their secrets and never sign anything that feels too good to be true.

    What’s coming in March?

    According to the official XRPL blog, $XRP Ledger devnet is scheduled for a reset on Tuesday, March 3, 2026.

    The reset will delete all ledger data in the devnet, including all accounts, transactions, balances, settings, offers, AMMs, escrows and other data.

    Crypto is just a day away from the highly anticipated March 1 deadline to settle reward provisions for the Clarity Act. Analysts expect this potential development to be the main driver of markets heading into March.

  • Following the US Attacks on Iran, the Entire World is Tracking Financial Markets Through Cryptocurrencies – What is the Latest Situation with Gold and…

    Following the US Attacks on Iran, the Entire World is Tracking Financial Markets Through Cryptocurrencies – What is the Latest Situation with Gold and…

    Increased geopolitical risk in global markets following US and Israeli military operations against Iran led to sharp fluctuations in cryptocurrency markets over the weekend.

    During hours when traditional markets were closed, investors turned to tokenized commodities like oil and gold via Hyperliquid, a decentralized exchange offering 24/7 trading.

    On the platform, oil contracts rose approximately 6.2% to $70.6 per barrel. Gold increased by over 5% to $5.464 per ounce, while silver surged more than 8% to $97.5. These price movements are seen as an early indication of a potential reaction in commodities when trading resumes in traditional markets on Monday.

    Rising geopolitical tensions triggered a “risk-off” trend in crypto assets. Bitcoin fell by as much as 3.8% during weekend trading, reaching $63,038, before stabilizing around $64,000. Ethereum, meanwhile, dropped by as much as 4.5%, falling to $1,836. According to CoinGecko data, approximately $128 billion was wiped from the total value of the digital asset market immediately following these developments.

    On the tokenized commodities side, silver contracts saw the highest trading volume. Volume exceeded $400 million in the last 24 hours, while gold contracts accounted for approximately $140 million in transactions. Contracts linked to US stock indices on the platform declined by 1% to 2%.

    Following US and Israeli forces’ strikes across Iran today, Iran reportedly launched missile attacks against targets in Israel, Qatar, the United Arab Emirates, and Bahrain within hours, and issued new threats against US-linked bases in Iraq.

    LVRG Research Director Nick Ruck stated that escalating tensions have created a widespread risk-aversion wave, adding, “While crypto assets are falling sharply due to their high beta characteristics, tokenized commodities on platforms like Hyperliquid are seeing safe-haven demand. This demonstrates the increasingly strong role of crypto as a space where macro expectations are priced in 24/7 while traditional markets are closed.”

    *This is not investment advice.

  • Crypto community fear of Iran choking oil supply and crashing markets may be overblown

    Crypto community fear of Iran choking oil supply and crashing markets may be overblown

    As tensions flare once again between Iran, Israel, and the U.S., social media, especially on crypto social media X (or Crypto Twitter), fears that Tehran could shut down the Strait of Hormuz, a vital oil chokepoint. Such a move, many worry, could send oil prices and global inflation soaring and roil financial markets, including bitcoin.

    However, those concerns may be exaggerated, according to some observers.

    Early Saturday, Israel and the U.S. launched airstrikes on Iran, aiming to dismantle the nation’s nuclear facilities and missile capabilities after failed negotiations. Iran retaliated by firing ballistic missiles at Israel and the U.S. bases in the region, escalating fears of a full-blown military conflict.

    This sparked jitters in the crypto market, the only venue open for investors to express fear and risk, while traditional markets stay closed over the weekend.

    Bitcoin BTC$64,892.86, the leading cryptocurrency by market value, dropped to $63,000 from around $65,600 before rebounding to $65,000. Oil-linked futures on Hyperliquid surged more than 5%.

    Hormuz fears

    The Strait of Hormuz is a chokepoint (21 miles wide at its narrowest point) between Iran to the north and Oman to the south, and facilitated about 20 million barrels of oil shipments each day in 2024, according to the U.S. Energy Information Administration (EIA).

    Naturally, amid simmering tensions, crypto accounts on X are worried that Iran may close the Strait of Hormuz, choking off oil supplies.

    “If a direct conflict between the United States and Iran has begun, this isn’t just geopolitics. It’s a global economic event. If the Strait of Hormuz is threatened, oil could spike toward $120–$150,” an X handle called @Crypto_Diet said.

    This could lead to an inflation shock, market sell-offs, a dollar surge, and depreciation in emerging-market currencies, the post added.

    Several more accounts have posted similar views, with some savvy geopolitical experts sharing these concerns.

    “Oil prices had already climbed to six-month highs ahead of the strikes. Iran is a founding OPEC member and the Strait of Hormuz, through which roughly 20% of global oil passes, is now directly implicated,” Geopolitical Strategist Velina Tchakarova said.

    On top of that, some news outlets are already reporting that several oil majors, including trading houses, have suspended oil and fuel shipments through the strait.

    Outright closure unlikely

    Some observers, however, argued that an outright closure of the strait is not in Iran’s best interests and may be geographically impossible.

    According to Daniel Lacalle, a PhD economist, fund manager, and chief economist at Tressis, Iran currently produces 3.3 million barrels per day of oil, but exports just half of that, which almost entirely goes to its ally China.

    “It would shoot itself in the foot,” Lacalle said, downplaying fears of an eventual Iranian shutdown of the strait.

    He added that OPEC members could quickly offset any potential disruption to oil supplies from Iran, while stressing that the United States, by itself, is the world’s largest oil producer.

    In other words, any spike in oil prices could be measured and temporary.

    The other aspect to consider is Geography. While the strait is split roughly in the middle between Iran and Oman, the shipping lanes are predominantly in Omani waters. It’s because water on the Iranian side is said to be shallower, while on the Omani side, it is deeper and better suited for the movement of large oil tankers.

    So, technically, ships could pass through Oman’s yard, which means Iran’s closure of its territory may not have a big impact on supplies.

    “Most waterways are in Oman, not Iran,” Energy Market Expert Dr. Anas Alhajji said on X.

    “Hormuz strait has never been blocked despite all wars – It cannot be blocked. Too wide. Well protected,” he added.

    All things considered, the odds of Iran shutting the strait and choking off oil supplies are low. That said, an all-out war can still trigger widespread risk aversion, potentially driving bitcoin below the widely watched $60,000 support level.

    Meanwhile, bitcoin’s price chart also signals a potential for deepening of the bear market ahead amid the Middle East crisis.

  • Bullish Sign? Bitcoin Nears Milestone as 100+ BTC Wallets Approach 20K

    Bullish Sign? Bitcoin Nears Milestone as 100+ BTC Wallets Approach 20K

    Bitcoin’s bullish setup is strengthening as wallets holding 100 $BTC or more approach record levels, according to Santiment, which says this trend can be considered a bullish sign when it rises during or after price declines.

    Bitcoin Flashes Possible Bullish Sign as Large Holders Climb Toward 20,000 Threshold

    Crypto analytics platform Santiment shared on social media platform X on Feb. 26 that bitcoin’s growing number of wallets holding 100 $BTC or more is approaching 20,000 addresses and may signal accumulation behavior, according to the firm. Santiment stated:

    “ Bitcoin is about to hit a milestone, surpassing 20,000 wallets with at least 100 $BTC. When this number rises during or after price declines (like it has been), it can be considered a bullish sign.”

    “If the number of 100+ $BTC wallets is growing, that suggests distribution across more large holders rather than a small group controlling everything,” Santiment noted. The platform emphasized that historically, rising whale wallet counts have occasionally been observed during accumulation stages that later supported price rebounds. This pattern has at times been associated with medium- to long-term upward price movements, particularly when larger entities absorb supply from retail traders during weaker market conditions, according to Santiment.

    Amount of wallets with 100+ bitcoin. Source: Santiment.

    At the same time, Santiment clarified that supply concentration among key stakeholders has not yet significantly expanded, which may explain why bitcoin prices remain subdued despite the increase in large wallets. The firm detailed:

    “The growth in wallet numbers just needs to match the growth in overall supply held, with retail slowly selling off their coins to the larger wallets.”

    Based on historical cycles, such redistribution phases have, in some instances, formed market bottoms before broader recoveries emerge, Santiment’s data suggests. While the data does not guarantee immediate upside, the predictive signal from expanding whale participation may indicate a strengthening accumulation structure that could support future price appreciation if sustained.

    FAQ 🧭

    • Why does the rise in 100 $BTC wallets matter for investors?
      Growing large-wallet counts are viewed by Santiment as signaling accumulation phases that have historically preceded price rebounds.
    • Does more whale participation guarantee a bitcoin rally?
      No, but sustained accumulation has at times aligned with medium- to long-term upward trends.
    • What does distribution across more large holders indicate?
      It suggests supply is spreading among whales rather than concentrating in a few hands, supporting structural stability.
    • Why are bitcoin prices still subdued despite wallet growth?
      Overall supply held by large wallets has not yet expanded enough to confirm a full accumulation-driven breakout.
  • Venus Flux Surpasses $119 Million In Total Market Size A Day After Launch, Indicating Renewed DeFi Interest

    Venus Flux Surpasses $119 Million In Total Market Size A Day After Launch, Indicating Renewed DeFi Interest

    Venus Flux, a liquidity layer launched yesterday on the BNBChain, continues to experience significant market performance, according to a revelation disclosed today by Venus Protocol, a decentralized lending protocol that allows users to earn interest by supplying crypto or borrow against their assets.

    Yesterday, on Thursday, February 26, 2026, Venus Protocol and a liquidity infrastructure project, popularly called Fluid, announced a strategic collaboration that enabled them to launch a unified liquidity layer, dubbed Venus Flux, on the BNBChain.

    As per the announcement, Venus Flux functions as a liquidity layer that aims to enhance capital efficiency, streamline yield generation, and make assets more productive across DeFi networks supported by the BNBChain blockchain.

    🚀 Venus Flux 24H Update

    Over the past 24 hours, Venus Flux continues expanding its unified liquidity layer — driving more efficient capital movement across @BNBCHAIN.

    📊 Total Market Size: $119,087,766
    📈 The number keeps growing
    Liquidity is accelerating. Momentum is… pic.twitter.com/13b7eGlxb9

    — Venus Protocol (@VenusProtocol) February 27, 2026

    Venus Flux On-Chain Activity and Usage Focus

    Today, Venus Protocol shared market updates that revealed that Venus Flux has recorded a massive $119,087,766 in total market size (market capitalization) following its debut on the BNBChain yesterday. This surge showcases increasing investor confidence in the Venus Flux platform, which is designed to integrate lending, trading, and other DeFi applications into a unified liquidity infrastructure.

    The liquidity platform aims to allow users and traders to engage in both lending and liquidity markets, thereby decreasing the need for manual token transfers between different chains. Following the launch, Venus Flux introduced smart collateral and debt mechanisms that facilitate both collateral and borrowed funds to constantly operate as positions in DEX liquidity pools, aiming to enhance capital efficiency.

    On-chain indicators show rising user engagement and governance participation on Venus Flux. According to the latest data from Dune Analytics, a total of $17,895,795 in capital has been borrowed from the liquidity platform since the beginning of its official network operation yesterday.

    Venus Flux Traction In DeFi Growing

    Data from Dune Analytics indicates that Venus Flux has achieved a significant milestone in DeFi, recording $17.89 million in cumulative lending volume after its launch yesterday, driven by the continued expansion of institutional participation and RWA integration in decentralized finance.

    The accomplishment showcases Venus Flux’s position as a rapidly emerging on-chain liquidity infrastructure. The record is an indicator that Venus Flux is on the journey towards becoming a major and efficient liquidity network globally, reducing costs and enhancing liquidity across financial markets.

  • Ban on Crypto Privacy Tools Would Be Counterproductive: UK Think Tank

    Ban on Crypto Privacy Tools Would Be Counterproductive: UK Think Tank

    In brief

    • A RUSI paper based on a public-private roundtable discussion has called for greater collaboration between privacy tool developers and law enforcement.
    • Participants at the roundtable repeatedly stressed that banning privacy solutions, such as privacy pools and ZK-proofs, would simply make illicit activity harder to detect.
    • The paper highlights several legitimate uses for privacy solutions, including company confidentiality and protection for potential wrench attacks.

    A report from the world’s oldest defense and security think tank has warned against banning blockchain-based privacy tools, arguing that blanket prohibition would merely result in bad actors using noncompliant services.

    In a paper titled, ‘Privacy-Enhancing Technologies in the Crypto Industry,’ the London-based Royal United Services Institute (RUSI) highlighted a “need to balance compliance objectives” with the growing role of privacy-related protocols and platforms in the cryptocurrency sector.

    It observed that growing demand for privacy solutions currently derives from four legitimate sources. They include individuals and entities wanting to avoid targeting by hackers, privacy concerns in the face of AI-related data mining by companies; privacy concerns of cryptocurrency businesses; and reducing the risk that high-net-worth and/or prominent individuals will be targeted by criminals or authoritarian governments.

    Based on roundtable discussions convened by the UK Home Office and National Economic Crime Centre in July 2025, the report highlights several blockchain-based privacy technologies, including zero-knowledge proofs, confidential stablecoins and privacy pools.

    While acknowledging that illicit actors are naturally attracted to privacy tools and “succeed by taking advantage of innovation,” the paper reports that roundtable participants—which included industry players as well as regulators and enforcement agencies—made the point “several times” that there was a “need to not ban” privacy solutions.

    “The participants highlighted that banning the technology would result in illicit actors using unregulated services,” the report reads. “As a result, law enforcement would have fewer entities to reach out to and request information from, subsequently limiting options for further investigations.”

    Instead, the roundtable participants agreed on the value of expanding collaboration between officials and providers, and of using privacy-enhancing technologies to aid law enforcement practices and “improve detection of illicit activity.”

    Crypto privacy and compliance

    The report’s author, RUSI Associate Fellow Allison Owen, told Decrypt that it’s important for policymakers and enforcement agencies to work together with developers to ensure that privacy solutions integrate compliance features.

    “From the roundtable, it is clear that the participating companies that integrate PETs and compliance features are willing to engage with the public sector,” she said.

    While accepting that there will always be individuals with bad intentions, Owen emphasized that this shouldn’t “cloud the possibility of responsible actors using the technology to benefit society.”

    Indeed, the report focuses almost exclusively on the legitimate uses of privacy solutions, highlighting their utility in the context of increasingly frequent “$5 wrench attacks,” which in 2025 claimed record losses of $41 million.

    It also discusses other drivers of usage, such as cryptocurrency firms wanting to keep crypto-based salaries confidential, as well as wanting to keep their business practices and fund flows private from competitors.

    Based on such practices, the roundtable’s participants generally believed that privacy-enhancing mechanisms “will continue to grow,” with zero-knowledge proofs in particular being integrated increasingly into business practices by the end of this year.

    However, despite this optimism Owen herself told Decrypt that “extensive” collaboration between developers and the public sector needs to happen before trust in crypto-related privacy solutions reaches a critical mass.

    “Building trust through the integration of compliance features will ultimately expand the use of the technology,” she said. “The roundtable reflects a step forward in driving these discussions around how to balance compliance and user privacy.”

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