Definition ∞ A clandestine proxy is an intermediary used to conceal the true origin or destination of digital asset transactions. This hidden agent masks network activity, making it difficult to trace the actual participants in a transaction or data exchange. It operates without public disclosure, providing a layer of anonymity or obfuscation. Such proxies can be employed for various purposes, including privacy enhancement or illicit activities.
Context ∞ The discussion around clandestine proxies often centers on regulatory challenges in the digital asset space, as they can facilitate money laundering or sanctions evasion. Authorities are working to develop methods for identifying and mitigating the risks associated with these hidden intermediaries. News frequently covers instances where such proxies are linked to cybercrime or illicit financial flows, prompting calls for stricter compliance measures. The ongoing debate weighs individual privacy against the need for financial transparency.
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