EU Organizations Advocate for Privacy-Enhancing Technologies Regulation

According to PANews, over 20 organizations, including the European Blockchain Association and the DeFi Education Fund, have jointly issued the "Declaration of Digital Freedom," urging the European Union to establish a clear regulatory framework for privacy-enhancing technologies (PETs). The declaration emphasizes that developers should not be held legally responsible for third-party use of open-source code and calls for the reconciliation of the General Data Protection Regulation with the Anti-Money Laundering Regulation set to be implemented in 2027, which will prohibit regulated entities from handling privacy coins like Monero. Dr. Joachim Schwerin, Chief Economist of the European Commission and a signatory of the declaration, highlighted that obfuscation technology serves as a crucial counterbalance against excessive personal data collection by both public and private sectors. This initiative directly responds to the Dutch court's 2024 criminal ruling against Tornado Cash developer Alexey Pertsev, whose defense attorney, Judith De Boer, noted the unprecedented nature of holding developers of neutral tools accountable. Currently, blockchain data analysis companies can rapidly breach on-chain pseudonymity using AI technology, and the declaration argues that comprehensive privacy solutions are essential for blockchain use in sensitive commercial and political contexts.