The European financial system is embracing a new blockchain paradigm. Dusk Network, with its inherent compliance genes, is becoming the preferred infrastructure in highly regulated markets.

The core advantage is quite simple—embedding privacy, auditability, and legal compliance into the protocol layer, rather than relying on patchwork solutions at the application layer. It may sound abstract, but real-world cases will make it instantly clear.

The Dutch licensed securities exchange NPEX is a typical example. Since 2023, they have issued digital equity and bonds based on Dusk's XSC (Confidential Smart Contracts), raising over €200 million so far. The most impressive part is that transactions are completely invisible to ordinary users, but the Dutch Financial Markets Authority (AFM) can perform real-time audits of holdings data and fund flows through authorized keys—this is the ideal state required by the MiFID II regulatory framework: "transparency to regulators, confidentiality to the market."

What’s more cutting-edge is the exploration at the central bank level. The Dutch Central Bank (DNB) has included Dusk in its pilot for the digital central bank currency privacy layer. Traditional CBDC designs often swing between "full transparency" and "full anonymity," but Dusk has charted a third path: protecting transaction privacy for ordinary users while enabling anti-money laundering agencies to trace fund flows under judicial authorization. This concept of "controllable privacy" has already been incorporated into the reference framework by the EU Digital Euro Working Group.

This bottom-up compliance architecture fundamentally differentiates Dusk from public chains that "decentralize first, figure out compliance later." As new European regulations like MiCA are gradually implemented, the value of such inherently compliant infrastructure will become increasingly prominent.