September 21, 2025

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EU’s Proposed Chat Regulation May Drive Users Towards Web3 Solutions Amid Privacy Concerns

As European legislators progress toward a decision on the contentious “Chat Control” law, concerns are mounting regarding its implications for privacy and user trust in digital communication. Privacy advocates assert that the regulation, aimed at preventing and combating child sexual abuse, may inadvertently steer users away from traditional platforms in favor of decentralized Web3 alternatives.

The focal point of the ongoing debate lies in the EU’s proposed legislation that mandates online platforms to scan private messages for illicit content before they are encrypted. This requirement has elicited strong criticism from various quarters, with detractors arguing it could introduce a backdoor into encrypted systems, undermining the EU’s own commitments to user privacy. “Empowering a potentially corruptible entity with extensive access to individuals’ private lives is fundamentally at odds with the principles of digital privacy,” remarked Hans Rempel, co-founder and CEO of Diode.

Elisenda Fabrega, the general counsel at Brickken, has also expressed skepticism regarding the legal foundation of the proposed law. “It appears to challenge the existing jurisprudence established by the Court of Justice of the European Union,” she stated, referencing Articles 7 and 8 of the EU Charter of Fundamental Rights, which guarantee privacy in communication and the safeguarding of personal data. Fabrega highlighted that client-side scanning could potentially lead to unnecessary monitoring of user content before it is transmitted, even in the absence of any unlawful activity.

Currently, 15 EU member states are in favor of the law, but critics indicate that its adoption might set a troubling precedent in legal and technological realms. Rempel underscored the risks involved, asserting that there are no assurances against the misuse of surveillance tools, noting that over 10% of data breaches originate from government systems. “The potential for abuse is significant,” he cautioned.

Fabrega raised further alarms regarding the long-term effects on public trust in messaging platforms, emphasizing that encryption is more than a mere technical feature; it symbolizes a guarantee of confidentiality to users. The potential erosion of this trust could force privacy-conscious users to migrate to decentralized Web3 platforms, which prioritize data protection through stringent encryption methods.

“The foundational tenet of Web3 is ‘Not your keys, not your data,’” Rempel emphasized, noting that users retain control over their own information from its creation to its eventual deletion. This shift toward self-custody for data reflects a growing trend of users seeking alternatives that align with their privacy expectations. Fabrega concurred, suggesting that if the Chat Control law is enacted, it may catalyze a shift toward decentralized options, potentially fragmenting the European digital market and hampering the EU’s ability to set global privacy standards.

The pivotal vote rests with Germany, which has yet to take an official position. While 15 countries currently support the Chat Control proposal, they do not meet the required 65% population threshold for passage. Should Germany endorse the legislation, its adoption becomes likely; however, if the nation opts to abstain or oppose, the initiative may face significant obstacles.

Rempel expressed skepticism about the likelihood of the law passing but warned that this may not be the last instance of attempts to infringe upon fundamental human rights under the guise of safety. As the situation unfolds, the path forward remains uncertain, with privacy at the forefront of discussions around digital communication regulations.