A regulatory storm may be brewing in Europe—and this time, Bitcoin is in the crosshairs. On June 2, Alexandre Stachtchenko (President of Bitcoin Policy France) posted a now-viral thread on X, warning that the European Data Protection Board (EDPB) may be laying the groundwork for a de facto ban on Bitcoin.
In the post, Alexandre unpacks the latest EDPB guidelines draft and highlights how a combination of data privacy laws (GDPR) and anti-money laundering rules (TFR, AMLR) could make it legally impossible to use Bitcoin in its current form within the EU.
“No legal path forward,” he writes. “Either you break GDPR or AML laws. There’s no way out.”
This article breaks down the key points of Alexandre’s alert and explains why the collision of EU regulations could become one of the most serious threats to Bitcoin’s legal status in Europe.
Section 1: What Is the EDPB Proposing?
The EDPB’s February 2025 draft guidelines assert that public keys can be considered personally identifiable information (PII). According to section 3.2, if a public key can “identify, even indirectly, a natural person,” then it falls under GDPR regulation.
Since Bitcoin is immutable—its blockchain entries cannot be edited or erased—the EDPB then concludes in section 4.2 that “technical impossibility cannot be used to justify non-compliance” with the GDPR.
In essence, the burden is on Bitcoin to adapt, not on the law. The final twist comes in section 4.3:
“This may require deletion of the entire blockchain.”
A radical statement with huge implications: since Bitcoin cannot forget, it may inherently violate GDPR, making its use legally non-compliant in the EU.
Section 2: The Privacy Paradox – Between GDPR and AML Laws
To resolve this conflict, the EDPB suggests a workaround: anonymize data before writing it to the blockchain using mixers, hashes, or zero-knowledge proofs.
But there’s a catch.
Under EU anti-money laundering laws (TFR 2023/1113 and AMLR 2024/1624), any attempt to anonymize transactions triggers criminal suspicion. According to these rules:
- Mixers and privacy wallets are labeled “high-risk tools”
- Full KYC is required before even sending crypto to a self-custody wallet
- Hosting or offering anonymizing tools is strictly forbidden
France went a step further in March 2025 by declaring that any anonymous transaction automatically triggers suspicion of money laundering, with up to 5 years in prison and €375,000 fines.
Section 3: No Legal Exit – Why Bitcoin May Be Trapped
This regulatory paradox creates a no-win scenario for Bitcoin users and service providers in the EU:
- If you anonymize transactions to comply with GDPR → you violate AML laws
- If you don’t anonymize → you violate GDPR due to the right to erasure
The result? Bitcoin becomes illegal by design, even if it’s never formally banned.
As crypto lawyer Alexandre Stachtchenko summarized in his viral post:
“No legal outcome is possible. Bitcoin becomes de facto illegal in Europe.”
Section 4: Is This the End of Bitcoin in the EU?
Not quite—yet. The public consultation on the EDPB draft is open until June 30, 2025, and crypto advocates are calling for action. Suggestions include:
- Aligning GDPR with crypto’s immutable architecture
- Ending the assumption that anonymity = criminality
- Encouraging technical innovation without blanket restrictions
With major countries like Germany, France, and Italy among the largest crypto markets in Europe, this issue could quickly evolve into a political battleground.
Final Thoughts: What This Means for Bitcoin and the EU
This isn’t the first time Europe has clashed with tech innovation—but this may be the most existential. The blockchain cannot delete, and regulators can’t accept immutability. Unless a compromise emerges, Bitcoin could become legally unusable in Europe within months.
The question isn’t just whether Europe will ban Bitcoin. It’s whether regulatory friction will strangle innovation under the weight of its own contradictions.
For now, all eyes are on Brussels—and the clock is ticking.
