An academic paper titled 'Reconciliation of Anti-Money Laundering Instruments and European Data Protection Requirements in Permissionless Blockchain Spaces' suggests governments target cryptocurrencies, especially privacy-preserving chains, to combat money laundering. The paper discusses methods to undermine trust in permissionless blockchains, such as 51% attacks and Sybil attacks, as a last resort after other policy initiatives. It emphasizes balancing regulatory compliance, innovation, and user privacy. The findings gained attention after users theorized similar tactics manipulating Monero's price. United Nations and US Treasury reports highlight cash as the preferred choice for illicit activities, with digital assets used for traditional schemes. Despite this, the US government is cracking down on privacy tools like crypto mixers, as seen in the case against Tornado Cash co-founder Roman Storm. This crackdown raises questions about the survival of privacy-enhancing services in the current regulatory landscape. Read more AI-generated news on: https://app.chaingpt.org/news