The crypto-focused investment arm of venture capital firm Andreessen Horowitz argued that modern cryptographic techniques, such as zero-knowledge proofs, can protect user privacy and still allow law enforcement to crack down on bad actors.
In a report on Tuesday, a16z Crypto policy partner Aiden Slaven and regulatory counsel David Sverdlov said that ZK-proofs, which verify the authenticity of data without disclosing any detailed private information, have the “greatest potential” by showing the origin of funds, but without publicly revealing…

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