The U.S. Financial Crimes Enforcement Network (FinCEN) wants to increase its understanding of how privacy technology works, including those governing certain blockchain protocols.
The agency is expected to host a virtual program on Sept. 9 and is inviting companies âdeveloping solutions to privacy issuesâ to participate, according to a press release on Wednesday.
FinCEN said the event will focus on the role of âprivacy-preserving principlesâ in developing technical solutions that increase innovation in financial services while countering the well-worn narrative of illicit activity and national security risks.
Those being asked to tag along to the agencyâs âInnovation Hours Programâ include Fintechs, Regtechs, venture capital firms and financial institutions.
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Privacy solutions being targeted include cryptographic zero-knowledge proofs (ZKP) and homomorphic encryption. ZKP allows two parties to prove a value is true, such as x, without revealing the identity of either party.
Though the concept stems from the 1980s, its technology has been bootstrapped to certain blockchain projects and protocols, including those used by Zcash and Mina.
The agency is asking participants to demonstrate, in one-hour meetings, just how these types of solutions operate and how businesses use them. That includes ways in which the privacy solutions can be utilized for private and public sector efforts, per the release.
âWe support responsible innovation,â said Michael Mosier, FinCENâs newly appointed Acting Director, âespecially that which promotes the resilience and safety of our financial system and the American people.â
Mosier, who worked at blockchain surveillance firm Chainalysis as chief technical counsel before his departure in 2020, will likely bring additional knowledge regarding blockchain privacy to the agencyâs event.
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Those interested should submit a request online before July 23 and provide relevant background information regarding their firmâs business and products, FinCEN said.