Regulators don’t oppose privacy they oppose privacy they can’t audit or understand. Untraceable chains trigger red flags; fully public chains expose institutions to too much risk. The solution is privacy that’s strong for users but auditable for oversight verifiable, rule-bound, and transparent when required.
Dusk is the Layer-1 that regulators can actually work with. It builds privacy that’s auditable by design, not an afterthought.
Phoenix is auditor-ready privacy at settlement. Zero-knowledge proofs validate transactions balances correct, no double-spends (nullifiers), execution compliant without revealing narrative data. Stealth addresses unlink transactions. Privacy survives public spends (staking rewards/gas) no leaks. View keys provide full, contextual access on demand regulators see everything needed without black boxes or untraceable opacity.
Hedger makes EVM smart contracts regulator-friendly. Encrypted balances and flows (homomorphic + ZK) mean validation happens without exposure. Regulators decrypt only what MiCA, AML, or local laws require precise, rule-bound. Obfuscated order books (coming) protect trades while allowing post-settlement verification.
Zedger is tailored for regulatory compliance in RWAs. Private minting, dividends, caps, force transfers all with ZK proofs that confirm KYC, limits, and rules without broadcasting sensitive data. Regulators get verifiable evidence when requested no need for external tools or trust assumptions.
Modular design supports audit needs: DuskDS Succinct Attestation gives fast finality audits aren’t delayed. Kadcast prevents origin leaks that complicate tracing.
The ecosystem shows real regulatory fit. NPEX (licensed Dutch exchange) enables regulated secondary trading 200M+ tokenized securities moving. Chainlink oracles/CCIP ensure MiCA-compliant data and interoperability.
Most privacy chains scare regulators. Most public chains scare institutions. Dusk satisfies both privacy that’s auditable, not feared. That’s why it’s the bridge for regulated on-chain finance.
