While the European Data Protection Board Guidelines
(EDPB), published in April 2025, are confirmed in their final version, there will no longer be any use of Bitcoin that is 100% compliant with European law.
➡️ A de facto ban, without ban, by regulatory collision.
How is that possible?
1️⃣ According to the EDPB, "A public key is personal data if it can identify, even indirectly, a natural person."
— EDPB 02/2025, §3.2
However, the Bitcoin blockchain is immutable. The information on it cannot be deleted.
But the EDPB is categorical: "Technical impossibility cannot be invoked to justify non-compliance with the GDPR."
— EDPB 02/2025, §4.2
In other words, it is up to reality to adapt, not to the norm. An EU classic.
And if one cannot delete the data, then... "This may require the removal of the entire blockchain."
— EDPB 02/2025, 4.3
⛔ The right to erasure becomes unenforceable. So: automatic violation of the GDPR.
2️⃣ The EDPB proposes a "solution": anonymization.
Anonymize data before on-chain registration (via mixers, hashing, zero-knowledge, etc.).
We are back on our feet: by resorting to confidentiality, the use of Bitcoin is possible. Miracle!
Error: this solution is prohibited by anti-money laundering rules.
3️⃣ For financial regulation, on which Bitcoin depends, anonymity = crime
📘 TFR (2023/1113)
• Mixers, tumblers, wallets "privacy" = high risk
• Identity required before transfer, even to a personal wallet
• KYC from €1,000
📕 AMLR (2024/1624)
• Formal prohibition of tools or accounts that facilitate anonymity
• DASPs are not allowed to offer or host them
📙 French Anti-Drug Trafficking Act – 2025
• Any anonymous transaction = automatic presumption of money laundering
• 5 years in prison + €375,000 if the origin of the funds is not proven
⚖️ Tornado Cash case (NL, May 2024)
The tool allowing anonymity, it "cannot therefore be characterized as a legitimate tool, (...) it is specifically intended for criminals."
📌 Consequence:
❌ You anonymize ➡️ AML infringement (TFR/AMLR)
❌ You don't ➡️ GDPR violation (can't be deleted)
💥 No legal way out. → Bitcoin becomes de facto illegal in Europe.
⏳ What to do?
🗓️ The EDPB's public consultation is open until 30 June 2025.
🎯 There is still time to act:
✅ Share this post
✅ Submit a formal comment to the EDPB
✅ Contact your MEPs: ask for GDPR/AML consistency, and an end to the presumption of "anonymity = crime".”
Alexandre Stachtchenko via linkedin
#bitcoin
