Definition ∞ Privacy risks refer to the potential for unauthorized access, disclosure, or misuse of sensitive personal or transactional information. These risks arise from vulnerabilities in data handling, system design, or user practices, potentially leading to identity theft, surveillance, or financial harm. Mitigating these risks is crucial for protecting individual autonomy and security.
Context ∞ In the cryptocurrency domain, privacy risks are a persistent concern due to the pseudonymous yet public nature of many blockchain ledgers. News frequently discusses the trade-offs between transparency and user privacy, and the development of privacy-enhancing technologies like zero-knowledge proofs. Regulatory scrutiny also addresses how digital asset services handle user data, aiming to prevent privacy breaches and ensure compliance with data protection laws.
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