Privacy coin projects have always carried the "regulatory risk" burden, but one project is going against the trend—DUSK has been focusing on turning compliance into a competitive advantage over the past two years.

Recently, two actions are worth noting. First, the project officially joined the European Blockchain Association as a core member; second, it passed a technical audit certified by KPMG. This is more than just an endorsement— in Europe, where the MiCA framework is about to take full effect, it’s equivalent to securing an entry ticket.

From a technical perspective, their Citadel protocol strikes an interesting balance—using zero-knowledge proofs to keep transactions confidential externally while meeting anti-money laundering review requirements. In other words, users’ transaction details are hidden, but audit trails remain clear and traceable. This perfectly meets the needs of institutional clients: privacy protection combined with the ability to produce compliance proof.

More importantly, in practical application, the Dutch Financial Markets Authority has approved a securities token issuance pilot based on this technology. This means moving from a paper plan to real financial business. Most traditional public chains initially build rapidly and are later forced to adapt to regulations. DUSK chose a more challenging path—building compliance into the core from the start.

The token price also reflects a shift in perception. After a long period of sideways movement, it surged more than fivefold within a month, indicating the market is re-pricing the value of the "privacy + compliance" combination. While other privacy coins still operate in regulatory gray areas, DUSK has already opened the door to mainstream finance.

However, some uncertainties remain: Is the 36-year token release cycle set too idealistically? Can the maturity of the European market truly support the expected ecosystem development? These questions still need further validation.

But regardless, in today’s industry where compliance is becoming the new norm, DUSK has chosen a difficult path, but it’s very likely to lead to a larger market space.