Over 20 organizations, including the European Blockchain Association and the DeFi Education Fund, have joined forces to advocate for clear regulatory frameworks surrounding privacy-enhancing technologies (PETs). Their joint declaration calls on the European Union to implement such a framework. The statement asserts that developers should not be held liable for misuse of open-source code by third parties, while proposing a reconciliation between the General Data Protection Regulation and the Anti-Money Laundering Regulation due to take effect in 2027. This regulation aims to prevent regulated entities from handling privacy coins such as Monero.
Dr. Joachim Schwerin, Chief Economist of the European Commission, is among the signatories who emphasize the significance of obfuscation technology as a vital tool against excessive personal data collection by both public and private entities. The initiative directly responds to the 2024 Dutch court ruling against Tornado Cash developer Alexey Pertsev. His defense attorney, Judith De Boer, highlighted the unprecedented challenge of holding developers of neutral tools accountable. The declaration argues that comprehensive privacy solutions are crucial for ensuring responsible implementation of blockchain technology in sensitive commercial and political contexts where on-chain pseudonymity is particularly valuable.
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