A recent decision by the European Data Protection Board (EDPB) questions the future of Bitcoin in Europe by classifying its public key as personal data.
EDPB's Decision on Public Keys
The EDPB ruled that a Bitcoin public key is personal data if it can identify a natural person even indirectly. This definition subjects every Bitcoin transaction to data protection obligations under the GDPR, thus constraining every operation within European law.
Compliance Issues with GDPR
The committee stated that technical impossibility cannot be invoked to justify non-compliance with the GDPR. Therefore, Bitcoin's immutability does not excuse the absence of the right to erasure, which the GDPR requires but blockchain cannot offer.
Expert Warning and Possible Consequences
Alexandre Stachtchenko raised concerns, stating that if EDPB's guidelines are confirmed, using Bitcoin compliant with European law will no longer be possible. This situation equates to a de facto ban on Bitcoin, driven by regulatory collision, highlighting the absurdity of a framework where technology (immutable blockchain) clashes with law (right to erasure).
The EDPB's recommendations create legal uncertainty that may jeopardize the use of Bitcoin and other public blockchains in Europe. It is essential for cryptocurrency market actors and policymakers to actively engage in the EDPB's open consultation until June 9, 2025, to adapt the legislative framework to current conditions.
