EU Strengthens Blockchain Privacy Requirements

The key recommendation of the EDPB is the implementation of data minimization methods. In particular, the organization advises crypto companies to use anonymization, in which all personal information is completely removed, or pseudonymization, where identifiers, such as public keys, are replaced with random values. This allows you to preserve the functionality of the blockchain, while reducing the likelihood of user identification.

One of the options proposed to achieve these goals is to store hashed identifiers instead of direct data, such as IP addresses or wallet addresses. Such identifiers cannot be linked to a specific person without separate information that must be located outside the blockchain.

According to the regulator, the implementation of such techniques will ensure a balance between technological development and compliance with users' privacy rights. This is especially relevant for public blockchains, where any network participant can view the transaction history.

The presented document, entitled "Guidelines on the processing of personal data through blockchain technologies", is at the public discussion stage. Those interested can send their comments and suggestions until June 9, 2025.

In parallel with the publication of the recommendations, an initiative was announced at the European Council level to create a European Digital Infrastructure Consortium. It is tasked with developing and implementing the so-called sovereign blockchain, temporarily called Europeum, which will meet EU requirements for digital security and privacy.

These steps indicate that the EU intends to actively regulate the rapidly developing field of blockchain technologies, focusing on the protection of personal data and the formation of technological independence.