In a ruling that could reshape how crypto user data is handled in Europe, the European Court of Justice has rejected Coinbase privacy latest attempt to challenge state surveillance practices and data requests. The decision marks a blow to Coinbase’s longstanding efforts to defend user privacy — and arrives just as European regulators ramp up enforcement across the crypto space.
At the center of the case is the controversial third-party doctrine, a U.S.-born legal concept now mirrored in many global frameworks. Under this doctrine, users are considered to have forfeited their right to privacy once they voluntarily share data with third-party platforms — even if that data relates to sensitive financial transactions.
Court Rejects Coinbase’s Privacy Argument
Coinbase had filed an amicus brief with the U.S. Supreme Court earlier this year, arguing that such doctrines are outdated and incompatible with modern expectations of digital privacy. Paul Grewal, Coinbase’s Chief Legal Officer, noted on X:
“The third-party doctrine says that any time you voluntarily share info with a third party you have no reasonable expectation of privacy whatsoever. Today @coinbase filed an amicus brief with the US Supreme Court to right this wrong.”
But the European Court ultimately aligned with the precedent, ruling against Coinbase’s claims. The decision now opens the door for further scrutiny and data access by European agencies, especially in the wake of Europol’s ongoing crypto investigations.
Europol Crackdown and Institutional Pressure Mount
This ruling also comes amid a broader crackdown by Europol on digital asset privacy practices. The agency has expanded its collaboration with national regulators, citing the need for enhanced transparency in blockchain-based financial activities — especially following multiple investigations into money laundering and illicit transfers using pseudonymous wallets.
Grewal further referenced the IRS case from 2017, in which the U.S. tax authority requested financial data from over 500,000 Coinbase users. He stated:
You can view the original thread here on X.
Final Thoughts: What This Means for Coinbase Privacy
The court’s rejection of Coinbase’s appeal signals a shift in the global regulatory stance on crypto privacy. While platforms like Coinbase continue to advocate for user rights and limitations on government surveillance, legal bodies appear to be siding with enforcement — especially in Europe.
As privacy doctrines come under more pressure and KYC/AML requirements tighten, centralized exchanges could face increased costs and user pushback. At the same time, the decision may further fuel interest in self-custody solutions and privacy-focused blockchain infrastructure as users seek greater control over their data.
Coinbase, for its part, has vowed to continue its legal efforts both in the U.S. and abroad. But for now, the tide appears to be turning in favor of regulation over privacy in the crypto world.
