Vitalik warns EU DSA risks ‘no space’ for content as privacy coins surge

Ethereum co‑founder Vitalik Buterin warned the EU Digital Services Act (DSA) could create a digital environment with “no space” for controversial ideas and privacy‑focused products, arguing the real harm stems from algorithmic amplification rather than the mere presence of unpopular content. He urged user‑empowerment measures — algorithmic transparency, user‑controlled feeds and verifiable, privacy‑preserving proofs (eg, zk‑proofs) — as alternatives to heavier surveillance or blunt enforcement. The commentary appears amid intensified EU crypto regulation in 2025 (MiCA implementation, stricter AML, sanctions and operational cybersecurity rules), which has narrowed compliant service offerings and led some exchanges to delist privacy tools. Market reactions show capital rotating into privacy coins: ZEC surged strongly YTD (reports cite >700%) while XMR has held up comparatively well; trading volumes and market‑cap rankings for privacy coins have risen. Analysts note that verifiable privacy tools and zk‑tech (aligned with Ethereum’s privacy roadmap and Layer‑2 zk solutions) could let platforms prove DSA compliance without exposing proprietary code or user data. For traders: expect heightened volatility and increased trading interest in privacy coins and zk‑focused projects as regulatory pressure reshapes flows; longer‑term adoption of verifiable privacy and zk solutions could strengthen fundamentals for related ecosystems.