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Only law enforcement should be able to trace but zkp

enhances privacy.

No issues doing KYC on chain in my opinion. What is there to hide if you are honest?

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I did not say that what is there to hide. I said honest users will remain pseudonymous as there are millions of them and not feasible to track at least in Bitcoin, while criminals will be tracked on any of them. Tracing in account system is easy too, but easier to mix coins and law applies to for that

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