EU Fines X €120 Million in Landmark Digital Services Act Case, Raising Crypto Privacy Concerns
The European Union has imposed its first major penalty under the Digital Services Act, fining X €120 million for deceptive verification practices and lack of transparency. While the immediate case involves social media operations, the December 5, 2025 ruling signals broader implications for digital privacy—particularly in cryptocurrency ecosystems.
European regulators identified three critical violations: a pay-to-verify system enabling impersonation, restricted researcher access to public data, and opaque advertising practices. X must address the verification flaws within 60 days and submit compliance plans for other issues within 90 days, facing escalating penalties for non-compliance.
The enforcement action reflects growing regulatory scrutiny of digital privacy tools. Analysts suggest the ruling could foreshadow tighter controls on cryptocurrency transactions, potentially undermining Core blockchain principles of financial anonymity and decentralization. Market observers are monitoring how this regulatory trend might impact privacy-focused coins and exchange operations across European jurisdictions.
