The world regulators will always try to restrict user privacy, but their efforts are futile, as cryptographers are one step ahead of regulators and create more advanced cryptographic tools, one of Monero founders believes.

Ricardo Spagni, the co-founder of privacy-enhanced Monero, commented on a recent IRS tender in which the agency commissioned a system to track transactions on cryptocurrency networks such as Monero and Lightning Network. According to Spagni, cryptographers will always be one step ahead of regulators.

“The U.S. Internal Revenue Service (IRS) wants the same level of insight [into monero] as they have over digital dollars in bank accounts; however, cryptographers and researchers are always going to be one step ahead on privacy,” Spagni said in an interview with CoinDesk.

Monero (XMR) was launched in April 2014. Its main feature is the increased level of transaction confidentiality. It is one of the most private and untraceable cryptocurrencies. The Monero protocol allows participants to hide their identity and amounts.

Spagni explains that regulators can only bet on control at entry and exit points, that is, at the time of entering or withdrawing money into the cryptosystem.

“Payment service providers and merchant service providers are sorts of the points at which they can apply a degree of regulation. And that I think is feasible.”

In September, the IRS announced a $625,000 tender to develop a transaction tracking solution for Monero and the Lightning Network. Two US-based companies successfully passed the competitive selection, with well-known firm Chainalysis being one of them.

On October 8, the US Department of Justice released a report on cryptocurrencies, which noted an increase in the use of anonymous coins and risks associated with them and related to money laundering and terrorist financing.