Recently, in this wave of market activity, everyone should have seen it — a certain leading exchange and a trading platform in Europe have consecutively delisted old-school privacy coins like XMR and ZEC, causing many to start pessimistic about the entire privacy track. A lot of voices say, "Under heavy regulatory pressure, privacy public chains have no future." But this kind of anxiety often overlooks a detail: there is a project that isn't hiding at all, but instead actively confronts the issue — it's called Dusk, a team based in Amsterdam.

Dusk's approach is quite unique. The latest EU MiCA regulation (regulation on crypto assets) includes a particularly troublesome rule called the "Travel Rule," which simply states that all transfers must include identity information. This requirement is inherently at odds with the anonymity logic of traditional privacy public chains. But Dusk didn't choose to fight head-on; instead, at the protocol layer, it built a "compliance middleware" using zero-knowledge proofs — the cutting-edge technology allows it to provide exchanges and regulators with a mathematical proof that: "This user has completed KYC and is not on any sanctions list," without revealing user identities or transaction amounts.

It sounds a bit complex, but the core idea is: only share the "compliance result" with regulators, while keeping privacy data sealed and secure. This approach satisfies anti-money laundering requirements without violating GDPR privacy laws. This design makes Dusk one of the few Web3 projects capable of directly interfacing with traditional European financial institutions, while other privacy projects are still struggling to survive on dark web and offshore platforms.