Ethereum co-founder Vitalik Buterin has voiced concerns over the European Union's Digital Services Act, warning it could eliminate space for controversial digital ideas. In a recent social media post, he advocated for greater user empowerment instead. This comes amid a surge in privacy-focused cryptocurrencies in 2025.
Ethereum co-founder Vitalik Buterin recently took to X to critique the EU's Digital Services Act (DSA), arguing that its approach risks creating a digital landscape with 'no space' for controversial ideas or products. The DSA seeks to enhance online platform safety and accountability, but Buterin contends that the real issue lies in algorithms amplifying extreme views, not in their existence. He cautioned that efforts to eradicate such ideas could lead to heightened surveillance and enforcement.
'I hope European govs do not go this way, and instead take a Pirate Party approach of user empowerment,' Buterin wrote.
This commentary unfolds against a backdrop of tightening crypto regulations in Europe during 2025. The Markets in Crypto-Assets (MiCA) framework took full effect, requiring crypto firms to obtain licenses, improve disclosures, and adjust token offerings. Stablecoins faced scrutiny, with mandates to phase out non-compliant variants. Additional rules on cybersecurity, operational risks, and anti-money laundering measures positioned crypto as a priority for enforcement, alongside new sanctions and oversight.
Meanwhile, privacy coins have emerged as the top-performing crypto sector year-to-date, according to data from Artemis. While Bitcoin's gains have been modest, Zcash has risen over 700%, and Monero has shown resilience with minimal declines. Trading volumes and market caps for these assets are climbing, reflecting a shift toward privacy-preserving options amid regulatory pressures.
Such trends echo past events, including U.S. sanctions on Tornado Cash, which sparked debates on privacy versus control and led to delistings of coins like Monero. Japan’s earlier ban on privacy coins similarly drove interest elsewhere. As Europe intensifies controls, Buterin's warning highlights ongoing tensions between regulation and innovation in digital assets.
