Vitalik Buterin Pushes Back on EU’s Chat Monitoring Law
Ethereum’s Vitalik Buterin has spoken out against the European Union’s proposed “Chat Control” law, which would force tech platforms to scan private messages. He says the rule would hurt privacy and increase the risk of surveillance.
Posting on X, Buterin warned that building in tools for law enforcement could make platforms less secure. “You cannot make society secure by making people insecure,” he wrote. He also added that “backdoors are inevitably hackable,” suggesting that any access point created for authorities could also be exploited by others.
The law is under debate by the EU lawmakers. It aims to curb illegal content from circulating through messaging apps and digital platforms. However, critics argue that it may give the governments too much access to private chats, emails, and personal files.
Buterin, in response to a post from entrepreneur Pieter Levels, who also called on all Europeans to reject the proposal, stated that Levels claimed the measure could open up private conversations to monitoring without oversight.
Groups focused on privacy rights have echoed those concerns, warning that if passed, the law could be used in ways far beyond its original goal.
Kraken Raises $500M as IPO Rumors Grow
Kraken, one of the oldest cryptocurrency exchanges in the U.S., has raised $500 million in new capital. The company is now valued at $15 billion, according to people familiar with the matter.
The funding round and series of internal changes hint at the possibility of an IPO. However, Kraken had yet to file its S-1 with the U.S. regulators at the time of this writing, an important filing before going public.
Kraken is an establishment that was founded in 2011 and began operation in 2013. It is still one of the biggest global players in the market today. According to CoinMarketCap data, the platform performed about $1.9 billion worth of trades in the last 24 hours.
Though the company is not revealing its intentions to the public, the recent funding would certainly go into more product development, infrastructure improvements, and compliance work. If the public offering is to take place, then it would follow on from recent IPOs by other exchanges entering the public markets.
UK Crypto Firms Call for Faster Regulation
Crypto companies in the United Kingdom are pressing the government to speed up its approach to digital asset rules. Although officials have talked about making the UK a global leader in the space, many say action has been too slow.
Azariah Nukajam, who leads regulation and compliance at Gemini, said delays are causing uncertainty. “Hesitation carries costs for a sector as fast-moving as crypto,” he wrote.
The government recently introduced a Draft Statutory Instrument to guide crypto asset regulation. While the document lays out basic rules, many in the industry say it still leaves too many open questions.
In August, the Financial Conduct Authority began allowing retail access to crypto exchange-traded notes. But crypto ETFs are still not allowed. On top of that, the rules don’t clearly explain how DeFi platforms should operate, leaving firms unsure about what’s permitted.
There are also concerns around new tax reporting rules. Some say the added burden could push users toward markets with simpler or more favorable tax systems.
Unless there’s more clarity, industry groups warn the UK could lose ground to countries with more flexible rules like Singapore, the U.S., or the UAE.
Crypto Sector Faces Key Policy Shifts
The crypto space is entering a period of change, with new policies taking shape in different regions. In Europe, the focus is on how far governments should go when it comes to scanning user data. In the UK, the priority is giving companies clear guidelines they can work with.
Meanwhile, large companies like Kraken are raising funds and preparing for growth, which could include going public. Others may follow if market conditions remain steady and regulation becomes easier to navigate.
More updates are expected in the coming weeks as lawmakers, exchanges, and investors respond to changes. The next few months could bring shifts in how the crypto market is structured — and how it operates within legal boundaries.
