By 2025, the global regulatory stance on crypto assets has taken shape. The EU MiCA regulation has been implemented, and the US SEC is tightening its scrutiny of security tokens. These are no longer hypothetical discussions within the industry but must-answer questions that every participant faces.

Under this trend, some projects have long seen through the direction. Take Layer 1 blockchains like Dusk as an example; since 2018, they have been committed to building "regulated privacy finance." This is not a last-minute compliance show but a planned route from the foundational architecture.

Its core concept is called "Auditable Privacy." Unlike Zcash's "completely dark forest" privacy scheme, Dusk employs a "selective disclosure" mechanism. Simply put, users can choose whether to display KYC information, when to display it, and to whom through the Citadel identity system. This protects ordinary users' privacy rights while fulfilling compliance obligations for institutional users—achieving both.

Why is this design critical? Because mainstream financial platforms in 2026 will start rejecting interactions with "naked wallets." Dusk's identity credential system can provide a unified solution of "privacy identity + compliance tags."

Specifically, in adapting to the MiCA regulation, Dusk has developed three components:

**First, Transaction Traceability.** By recording transaction hashes and compliance credentials on a bulletin board module. When regulators need to verify, they can do so via an authorized interface—no VPNs or hacking required.

**Second, Asset Classification.** Different types of RWA tokens require different compliance rules. The system can automatically recognize asset types and match the relevant regulatory standards for each region, eliminating manual tagging.

**Third, Compliance Automation.** Built-in compliance templates directly cover common operations like token issuance and dividends, with rules hardcoded at the smart contract level. This makes it difficult for even novice developers to make mistakes.

As the regulatory framework becomes clearer, truly forward-looking projects have internalized compliance capabilities into their product offerings. This is not hype but a matter of survival.