Many people immediately think that "compliance" contradicts the original intention of blockchain when they hear about it. In fact, what DUSK is doing is quite interesting.

It doesn't bypass regulation; instead, it uses technology to make compliance smoother. The core is the Hedger engine—users' transaction data is fully encrypted, but once authorized by regulatory agencies (such as tax authorities), it can directly generate compliant reports. Data is secure on-chain, and auditing becomes more efficient—killing two birds with one stone.

This approach is actually paving the way for traditional financial institutions. They want to use blockchain to reduce costs and improve efficiency, but their biggest fear is crossing regulatory red lines. DUSK has turned compliance into a programmable foundational service, protecting privacy while meeting regulatory requirements. Only then can traditional finance truly embrace on-chain applications.

In simple terms, it is using technology to redefine compliance—not blockchain yielding to regulation, but enabling both to work together. This mechanized design is indeed attractive for attracting institutional-level funds.