EU’s Chat Control Law Threatens Encryption as Crypto Privacy Faces New Restrictions

The EU’s “Chat Control” proposal could force messaging apps to scan private conversations, while separate regulations target cryptocurrency privacy tools.

The scheduled October 14, 2025 vote will determine whether 450 million Europeans lose their right to private digital communication. Meanwhile, privacy-focused cryptocurrencies like Monero face EU-wide bans starting in 2027.

What Chat Control Actually Does

The Chat Control regulation would require all messaging platforms operating in Europe to scan user messages before encryption occurs. This includes popular services like WhatsApp, Signal, and Telegram.

The scanning happens through “client-side scanning” technology that checks photos, videos, and text messages on users’ devices. Any content flagged by artificial intelligence systems gets automatically reported to authorities.

Users who refuse scanning would lose the ability to send images, videos, or links through messaging apps. However, government and military accounts would be exempt from these requirements, raising questions about why officials need privacy protections that ordinary citizens cannot have.

The European Commission expects surveillance reports to increase by 354% once the system operates at full capacity.

Privacy Experts Sound the Alarm

Over 500 cryptographers and security researchers from 34 countries signed an open letter calling Chat Control “technically infeasible” and a “danger to democracy.”

The experts warn that scanning billions of messages daily cannot achieve acceptable accuracy rates. Even low error rates would overwhelm law enforcement with false reports while innocent users face wrongful accusations.

Creating backdoors for government access also makes everyone less secure. Any vulnerability that allows official scanning could be exploited by criminals, foreign intelligence services, or hackers.

Swiss federal police data shows 80% of machine-generated reports turn out to be false positives. German authorities received over 99,000 wrong reports about private chats and photos in 2024. Irish authorities confirmed only 852 of 4,192 automated reports contained actual illegal content.

Germany Holds the Key Vote

As of the latest reports, 15 EU countries support Chat Control, while six oppose and six remain undecided. Dissenting countries include Belgium and Poland, while supporters include France, Italy, and Spain.

Source: @echo_pbreyer

Germany’s position could determine the outcome. With 83 million citizens, German support would push the backing to 71% of the EU population – enough to approve the regulation.

There are conflicting reports about Germany’s position. Some sources indicate Germany briefly joined the opposition before the September 12 meeting, while others report Germany’s position was “reverted to undecided” during the September 12 meeting itself.

Major German political parties across the spectrum oppose the proposal, creating pressure on the government to reject it. However, Germany’s ultimate position remains uncertain as the October 14 vote approaches.

Cryptocurrency Privacy Under Attack

While Chat Control targets messaging apps, the EU has already moved against cryptocurrency privacy through separate anti-money laundering regulations.

Starting in July 2027, crypto exchanges and service providers will be prohibited from supporting privacy coins like Monero, Zcash, and Dash. The regulations also ban anonymous crypto accounts and require identity verification for transactions over €1,000.

Major exchanges are already responding to regulatory pressure. Kraken delisted Monero from European markets, while Binance removed privacy-focused tokens citing regulatory alignment.

These restrictions create what privacy advocates call a “surveillance cycle” – increased government monitoring drives users toward decentralized alternatives, which then face new restrictions.

The Push Toward Decentralized Alternatives

Privacy experts predict that Chat Control could accelerate adoption of blockchain-based communication and financial tools that operate outside government control.

Decentralized messaging protocols built on blockchain technology don’t rely on central servers that governments can pressure. While still developing, these systems represent potential technical solutions to surveillance concerns.

Privacy-focused cryptocurrencies offer financial transactions that are harder to track than traditional banking. This technology becomes more appealing when users worry about government overreach in digital surveillance.

However, these tools require technical knowledge that many users lack. The challenge lies in making privacy-preserving technology accessible to ordinary citizens who simply want to protect their legitimate communications.

The broader trend shows increased government surveillance driving more people toward decentralized alternatives, even as authorities target these same privacy tools through regulation.

Final Verdict Pending

The scheduled October 14 vote represents a turning point for digital privacy in Europe and potentially worldwide. Success in Europe might encourage similar surveillance proposals in other regions, while failure could strengthen international norms protecting encrypted communications.

The dual assault on messaging privacy and cryptocurrency anonymity shows how governments are expanding surveillance powers across digital platforms. For ordinary users, this means the knowledge that private messages, photos, and financial transactions face automatic scanning and potential government review.

Whether Europeans will accept this trade-off between privacy and claimed security benefits depends largely on Germany’s final decision and the broader public response to what many experts consider the most significant threat to digital privacy in Europe’s recent history.