Article: Legal requirement identification and zero-knowledge proof under concealed addresses Journal: International Journal of Reasoning-based Intelligent Systems (IJRIS) 2026 Vol.18 No.13 pp.58 - 72 Abstract: In the face of the regulatory failure problem caused by blockchain hidden addresses, existing solutions often fall into a dilemma where 'privacy protection' and 'compliance review' are either one or the other. This paper proposes an innovative integration framework that transforms the behavioural elements in anti-money laundering and other legal provisions (such as 'high-frequency and small-scale transactions') into computable logic. Based on zero-knowledge proof technology, it generates verifiable credentials to determine whether the transaction behaviour is compliant without revealing the true identity of the address. Experiments on a public blockchain transaction dataset (elliptic) show that this framework achieves an average improvement of over 15% in core identification performance compared to traditional non-private rule-based methods, while maintaining an acceptable performance overhead. As a proof-of-concept validation conducted on a transparent dataset with simulated concealment, the actual performance may differ in native privacy-preserving chains. This research provides a new approach that combines legal rigor with technical feasibility for achieving effective on-chain behaviour supervision while protecting user privacy. Inderscience Publishers - linking academia, business and industry through research

Title: Legal requirement identification and zero-knowledge proof under concealed addresses

Authors: Ping Ji; Haijie Wang

Addresses: Department of Law, Xianda College of Economics and Humanities, Shanghai International Studies University, Shanghai, 200083, China ' Department of Law, Xianda College of Economics and Humanities, Shanghai International Studies University, Shanghai, 200083, China

Abstract: In the face of the regulatory failure problem caused by blockchain hidden addresses, existing solutions often fall into a dilemma where 'privacy protection' and 'compliance review' are either one or the other. This paper proposes an innovative integration framework that transforms the behavioural elements in anti-money laundering and other legal provisions (such as 'high-frequency and small-scale transactions') into computable logic. Based on zero-knowledge proof technology, it generates verifiable credentials to determine whether the transaction behaviour is compliant without revealing the true identity of the address. Experiments on a public blockchain transaction dataset (elliptic) show that this framework achieves an average improvement of over 15% in core identification performance compared to traditional non-private rule-based methods, while maintaining an acceptable performance overhead. As a proof-of-concept validation conducted on a transparent dataset with simulated concealment, the actual performance may differ in native privacy-preserving chains. This research provides a new approach that combines legal rigor with technical feasibility for achieving effective on-chain behaviour supervision while protecting user privacy.

Keywords: identification of legal elements; zero-knowledge proof; ZKP; privacy computing; blockchain regulation; regulatory technology.

DOI: 10.1504/IJRIS.2026.154052

International Journal of Reasoning-based Intelligent Systems, 2026 Vol.18 No.13, pp.58 - 72

Received: 29 Jan 2026
Accepted: 16 Mar 2026
Published online: 10 Jun 2026 *

Title: Legal requirement identification and zero-knowledge proof under concealed addresses

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