As regulators increase their focus on privacy-centric protocols, such as cryptocurrency mixers, the development of zero-knowledge (ZK) proofs emerges as a potential solution.

ZK-proofs, alongside decentralised identity systems, offer a pathway for protocols to uphold privacy standards while meeting regulatory requirements.

Recent legal actions, including the sentencing of a Tornado Cash (CRYPTO:TORN) developer, underscore the importance of compliance in the crypto space.

ZK-proofs could enable verification of transaction legitimacy without compromising user privacy, though further development is needed.

Amid growing concerns, ZK-proofs present a promising tool for balancing financial privacy and regulatory scrutiny.