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I buy the idea that there's a small group of people who Banksy trusts with their identity and act on their behalf.

I don't know why we wouldn't know who those people are, though.

Yeah I think it should work out like that.

Still doesn't make sense why police does not prosecute the guy when it clearly does some things that are illegal.

The most plausible theory I'm willing to believe is "the guy is part of the English royalty".

Well, if the police don't know who Banksy is, and there's no evidence that his "inner circle" is aiding his crimes, what can they do?

Then again, I know almost nothing about UK criminal law, so I don't know the limits and requirements for compelling someone to give information.