Can Cryptocurrencies Preserve Privacy and Comply with Regulations?

20 Pages Posted: 19 Dec 2018 Last revised: 10 May 2019

See all articles by Geoffrey Goodell

Geoffrey Goodell

University College London

Tomaso Aste

University College London

Date Written: November 30, 2018

Abstract

Cryptocurrencies offer an alternative to traditional methods of electronic value exchange, promising anonymous, cash-like electronic transfers, but in practice they fall short for several key reasons. We consider the false choice between total surveillance, as represented by banking as currently implemented by institutions, and impenetrable lawlessness, as represented by privacy-enhancing cryptocurrencies as currently deployed. We identify a range of alternatives between those two extremes, and we consider two potential compromise approaches that offer both the auditability required for regulators and the anonymity required for users.

Suggested Citation

Goodell, Geoffrey and Aste, Tomaso, Can Cryptocurrencies Preserve Privacy and Comply with Regulations? (November 30, 2018). Available at SSRN: https://ssrn.com/abstract=3293910 or http://dx.doi.org/10.2139/ssrn.3293910

Geoffrey Goodell (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Tomaso Aste

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

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