Privacy Competition Intensifies: EU Relaxes Regulations Amidst Blockchain Boom

Proposed updates to the European Union’s flagship General Data Protection Regulation (GDPR) have ignited strong opposition from privacy groups, who caution that these revisions could undermine years of progress in digital rights. The European Commission’s Digital Omnibus package, scheduled for a vote in December,

- such as the GDPR, AI Act, and Data Act - by relaxing certain rules on data usage to facilitate artificial intelligence research. Detractors believe these changes would allow major tech companies like , , and OpenAI to leverage Europeans’ personal information under the broad justification of “legitimate interest,” sidestepping strict consent protocols. “This is a slow erosion of rights,” one privacy advocate told , highlighting the gradual weakening of GDPR protections.

This pushback comes as businesses and the U.S. government increasingly call for lighter regulatory requirements.

by allowing AI companies to process “special categories” of data, including health and biometric information, if they argue it is essential for technological advancement. Although the EU has historically led on privacy standards, these proposals signal a shift toward aligning with U.S. and Chinese models, where AI development faces fewer data restrictions.

As regulatory certainty declines, privacy solutions built on blockchain are gaining momentum as an alternative. , a lesser-known privacy-focused cryptocurrency, has seen significant growth recently as investors move funds from established privacy coins like and . The platform’s empowers users to set privacy rules within smart contracts, allowing selective sharing of information without revealing sensitive data. This breakthrough, described in , tackles a major challenge in blockchain: balancing openness with privacy in complex fields like DeFi, AI, and enterprise analytics.

COTI’s momentum is supported by more than just speculation.

have reached a six-month peak, rising from 100 to over 650, and the total number of accounts now surpasses 17,000. The platform’s compatibility with and more than 70 other blockchains has drawn developers looking for privacy-friendly infrastructure. “ ” is about more than concealing data—it’s about empowering users to decide what information they disclose and when,” the COTI white paper’s author explained. This philosophy is gaining traction as debates over data ownership intensify in the wake of GDPR.

The EU’s changing regulatory stance and the rise of blockchain privacy tools point to a larger conflict: finding the right balance between technological progress and personal rights. While the Digital Omnibus emphasizes economic growth, it may threaten the core idea that individuals should control their own data. In contrast, decentralized solutions like COTI embed privacy directly into digital infrastructure, offering an alternative to traditional regulatory approaches.

At present,

. Henna Virkkunen, the EU’s antitrust leader, argues that these changes are vital to prevent hindering AI innovation. Meanwhile, in November, reaching $127 million and approaching the billion-dollar mark it once hit in 2017. The outcome of the ongoing contest between regulators and blockchain innovators could shape the next chapter of the digital economy.