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    Home»Regulation»EU’s Chat Regulation Raises Privacy Concerns, Influences Web3 Transition
    Regulation

    EU’s Chat Regulation Raises Privacy Concerns, Influences Web3 Transition

    Ethan CarterBy Ethan CarterSeptember 21, 2025No Comments3 Mins Read
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    As EU lawmakers approach a decision on the contentious “Chat Control” law, privacy advocates caution that it could undermine public confidence in digital communications and drive users toward Web3 platforms.

    With European lawmakers nearing a verdict on the divisive “Chat Control” legislation, privacy advocates are warning that it may erode public trust in digital communications and lead users to explore Web3 alternatives.

    The core issue revolves around the EU’s proposed Regulation to Prevent and Combat Child Sexual Abuse, which mandates platforms to scan private messages for illegal content prior to encryption. Detractors argue that this essentially establishes a backdoor into encrypted systems, contravening the EU’s own privacy commitments.

    “Allowing a fundamentally corruptible entity extensive visibility into people’s private lives contradicts the fundamental principles of digital privacy,” Hans Rempel, co-founder and CEO of Diode, stated to Cointelegraph. He described the proposal as an overreaching threat.

    Elisenda Fabrega, general counsel at Brickken, highlighted that the law seems “difficult to justify” based on the current jurisprudence of the Court of Justice of the European Union. She referenced Articles 7 and 8 of the EU Charter of Fundamental Rights, which ensure the confidentiality of communications and safeguarding of personal data.

    “Client-side scanning would allow monitoring of content on user devices before transmission, including in situations with no evidence of unlawful activity,” she elaborated.

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    15 EU countries support the law. Source: Fight Chat Control

    Related: US Treasury’s DeFi ID plan is ‘like putting cameras in every living room’

    EU law establishes a troubling precedent

    Experts caution that the regulation establishes a perilous precedent from both a legal and technological perspective. “There are no assurances,” Rempel added, when asked about the potential misuse of these tools. “Over 10% of all data breaches occur in government systems,” he warned.

    Fabrega emphasized concerns about the potential impact of such surveillance on public trust. “Encryption is not just a technical function; it is a commitment to users that their private communications will be kept confidential,” she noted.

    A decline in trust toward traditional messaging platforms may prompt users to seek decentralized Web3 alternatives, which are designed to safeguard user data through inherent encryption.

    “Web3’s privacy mantra is ‘Not your keys, not your data,’” Rempel expressed. “This represents true self-custody for data,” he added, emphasizing that end-users retain sovereignty over their information from “cradle to grave.”

    Fabrega shared this perspective, asserting that “privacy-conscious users will increasingly turn to decentralized Web3 alternatives” if Chat Control becomes law. She cautioned that such a shift could “fragment the European digital market” and weaken the EU’s position in shaping international privacy norms.

    Related: EU proposal to scan all private messages gains traction

    The decision rests with Germany

    Germany, which has the crucial vote, has yet to finalize its position. Although 15 EU countries currently back the proposal, they do not meet the 65% population threshold needed for enactment. If Germany supports it, the law is likely to pass; if it abstains or opposes, the legislation will likely fail.