Blockchain, also known as a distributed ledger, is a prominent example of next-generation information technology. It has been widely applied in various fields, including finance, healthcare, energy, and government affairs. Privacy protection technologies within the blockchain that can be regulated not only safeguard users’ privacy and enhance trust but also prevent misuse of blockchain for illegal activities, ensuring compliance with regulations. Current privacy protection schemes for regulatable blockchains are typically based on bilinear pairing, which exhibit relatively low computational efficiency and fail to meet the demands of high-concurrency scenarios. To address these issues, this study proposes an efficient regulatable identity privacy protection scheme in blockchain. By designing a zero-knowledge proof to verify the consistency of the receiver’s identity without bilinear pairing, along with a traceable ring signature scheme, this approach effectively protects the identity privacy of both parties in transactions while maintaining the effectiveness of supervision. The experimental results indicate that when the number of ring members is set to 16, as required by Monero, the execution time of all algorithms in the efficient regulatable identity privacy protection scheme in blockchain is within 5 milliseconds. Compared to similar schemes, efficiency has improved by more than 14 times, and the message length has been reduced to 50% of the original scheme, demonstrating enhanced computational efficiency and a shorter message length.