Introduction: The Collision Between Blockchain Design
and Data Protection Law
Crypto and Web3 technologies were built to reduce dependence on
centralised intermediaries. By design, blockchains prioritise
immutability, transparency, censorship resistance and trust
minimisation. These strengths, however, sit in clear tension with
modern data protection frameworks that emphasise consent, purpose
limitation, data minimisation, correction and erasure.
India's Digital Personal Data Protection Act, 2023, along
with the Digital Personal Data Protection Rules, 2025, brings this
conflict into sharp relief. For crypto exchanges, DeFi protocols,
NFT platforms, DAOs, wallet providers, custodians and analytics
firms, the data privacy regime raises fundamental DPDP compliance
issues. These include identifying who is legally responsible for
data processing, determining whether immutable ledgers can
accommodate user rights, and understanding how cross-border
decentralised