When regulations tighten, why are numerical information difficult to completely erase - Vitalik Buterin reminds Europe

What Do the Numbers Say?

The year 2025 witnesses an interesting phenomenon: while most of the cryptocurrency market faces pressure, privacy-focused coins are breaking out strongly. According to Artemis data, this is the best-performing sector since the beginning of the year, far surpassing other industries.

Zcash [ZEC] leads with an impressive increase of 616.58% over the past year. Monero [XMR] also maintains a solid position with very low decline. Meanwhile, Bitcoin [BTC]—the market’s backbone—only decreased by 10.96% in the same period, indicating relatively limited performance compared to previous years.

Trading volume of privacy-related assets has also increased significantly, with these coins climbing in market rank and capitalization.

Vitalik Buterin Issues a Warning About Europe’s “Gap”

Ethereum founder has publicly opposed the European Union’s Digital Services Act (DSA). In a post on X, Buterin warns that this policy risks creating a digital environment where “there is no longer a gap” for controversial ideas or tools to exist.

Instead of completely removing these contents, Buterin believes the core issue lies in algorithms—they often amplify controversial ideas on a large scale. Completely banning them, he argues, would encourage over-surveillance and enforcement.

“I hope European governments choose a different approach, empowering users rather than controlling them,” he emphasized.

When Regulations Tighten, Everything Becomes More Necessary

Europe is currently in a phase of strictly enforcing cryptocurrency regulations. MiCA—the Regulation on Markets in Crypto-Assets—has officially come into effect, requiring companies to obtain licenses, improve public disclosures, and review token lists. Stablecoins are subject to strict oversight, with regulators forcing platforms to gradually remove non-compliant options.

At the same time, new regulations on cybersecurity and operational risks are also in effect. Anti-money laundering agencies identify cryptocurrencies as a priority sector, accompanied by new sanctions and stricter oversight.

The US sanctions on Tornado Cash marked a turning point. This niche crypto tool became a major topic of debate about privacy and control. Since then, exchanges have found it more difficult to delist Monero to comply. Japan banned private coins entirely years ago, and many other countries followed suit.

The Contradiction Between Restrictions and Demand

As access becomes more restricted, interest shifts elsewhere. Recent rulings on Tornado Cash continue to draw attention to privacy-focused tools. This is the context where digital information is hard to erase completely—when a system removes privacy, demand for it increases.

Europe is tightening control, but private coins are rising. This correlation is not accidental. Buterin’s warning about “no longer being a gap” for controversial tools reflects the current situation—when systems eliminate autonomy, people seek it even more.

Conclusion

The surge of privacy-focused coins in 2025 is no coincidence. It is a market reaction to tightening regulations in Europe. As MiCA and DSA are enforced, capital is shifting toward assets built to protect holders’ autonomy.

Vitalik Buterin and advocates of political pluralism are warning: when the digital environment shrinks, digital information that is hard to erase will become even more sought after, because people naturally seek what is banned.