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Ethereum co-founder Vitalik Buterin has criticised the European Union’s Digital Services Act for prioritising control over openness in the digital economy.
In a detailed post on X, Buterin argued that the DSA pushes towards a “space-less” internet with no tolerance for grey areas.
He said the legislation risks limiting the environments where new and controversial ideas can emerge and be tested.
Buterin stressed that the main danger is not controversial ideas themselves but the algorithms that amplify them at scale.
According to Buterin, heavy-handed regulation focuses on erasing content rather than addressing amplification mechanics.
The DSA applies broadly to platforms serving European users, including those connected to cryptocurrency services.
Its scope covers both large and small platforms, regardless of where they are based.
Buterin acknowledged that closing regulatory loopholes has benefits for accountability and consumer protection.
However, he warned that constant compliance pressure creates a chilling effect on innovation.
He described this approach as producing an internet with no unregulated spaces or creative margins.
Buterin said zero-tolerance frameworks naturally drift towards surveillance and technocratic enforcement.
He warned that public debate can become treated as a risk to be neutralised rather than managed.
The Ethereum founder argued that pluralism, not uniformity, is essential for a resilient digital society.
In his view, overly rigid regulation does not eliminate innovation but pushes it elsewhere.
He said crypto innovation historically migrates when frameworks become too restrictive.
The debate has renewed interest in privacy-focused technologies across the crypto sector.
Privacy-first narratives are gaining traction as users respond to increased monitoring.
Observers note renewed attention on privacy coins such as Monero and Zcash.
Advocates argue that greater data collection increases systemic risk rather than safety.
Buterin suggested that breaking algorithmic amplification would be more effective than blanket content controls.
He said innovation requires room for experimentation, disagreement and failure.
Analysts say the comments highlight growing tension between European digital policy and crypto development.
The discussion underscores broader concerns about how regulation shapes the future of decentralised technology.
At the time of reporting, Ethereum price was $3,037.89.