Ethereum Foundation, in a proposal aimed at GDPR compliance, in alignment with GDPR interpretations, requires irreversible anonymization rather than pseudonymization to fall outside the regulatory scope

Quotes that support claims

Controller vs. Processor: Any actor who determines the purposes and means of on-chain personal data (dApp developers, node operators, validators) is a controller.

“By pushing personal data to the edges (wallets and DApps), using offchain storage with metadata-erasure, and splitting roles cryptographically, we can focus GDPR controller duties on a small set of entities, while the wider network becomes mere processors or falls out of scope,” Reggianini said.