- More than two dozen organizations back a call for clear rules on privacy-enhancing technologies (PETs) in the EU.
- The Digital Freedom Declaration seeks to support innovation while clarifying liability for developers.
- EU privacy and anti-money laundering regulations show conflicting positions on digital privacy.
- The recent conviction of Alexey Pertsev for Tornado Cash highlights legal uncertainty for developers of privacy tools.
- Experts warn that blockchain privacy is crucial as public data exposure grows with analytical tools.
Civil society groups, technologists, and trade organizations launched the Digital Freedom Declaration in May 2025 across Europe. The initiative demands regulations that encourage innovation in privacy-enhancing technologies while giving legal clarity to developers. Over two dozen entities—including the European Blockchain Association, Blockchain for Europe, the European Crypto Initiative, and U.S.-based DeFi Education Fund—support this agenda.
The declaration highlights the need for simple and fair legal standards for those working on privacy tools. It calls for an environment where technological advancements can thrive, public trust can grow, and data remains protected. The supporters stress that rules must help the European Union remain globally competitive.
Backing this effort, Dr. Joachim Schwerin from the European Commission states that developers should not be held responsible if others misuse their privacy tools after release. Schwerin calls privacy software a “societal good” that shields personal data from overreach and is essential for digital rights and business secrecy. Signatories also seek public education and clear liability guidance, moving away from prosecuting open-source developers for third-party misuse.
There is currently a contradiction within EU legislation. The General Data Protection Regulation (GDPR) promotes privacy by design, often interpreted as requiring privacy-enhancing technology. Conversely, the new Anti-Money Laundering Regulation (AMLR), effective July 2027, will prohibit regulated crypto-asset providers from interacting with privacy coins or anonymous crypto accounts. Continuing to offer tokens like Monero or ZCash could result in loss of licensing for businesses, potentially forcing privacy innovation outside Europe.
A high-profile example is the case against Alexey Pertsev, a developer of Tornado Cash, who received a 64-month prison sentence for money laundering in May 2024. Dutch authorities held him accountable for how people used his open-source privacy tool. Pertsev remains under electronic monitoring pending appeal. His lawyer, Judith De Boer, says, “Holding someone in the real world responsible for creating a neutral tool is unprecedented.” She believes better understanding of decentralized finance (DeFi) and privacy issues is critical to fair outcomes.
The need for privacy tools is becoming urgent. On public blockchains like Bitcoin and Ethereum, every wallet address and transaction is visible—making user behavior easier to analyze as technology advances. Firms such as Chainalysis can identify user data, reducing the effectiveness of blockchain pseudonymity. Full privacy solutions are seen as essential for secure uses like payroll, supply chains, or donations. The debate continues over Europe’s role in blockchain privacy’s global future.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Rep. Steil Urges Congress to Avoid Delays in Crypto Regulation Bills
- IMF Confirms El Salvador’s Bitcoin Holdings Unchanged in Review
- Blockstream CEO: Trump Fast-Tracks Bitcoin Into Government Mainstream
- Ethereum Surges 50% Amid Spot ETF Hopes and Market Optimism
- SharpLink Gaming Unveils $425M ETH Treasury, ETH Futures Surge
