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The European Parliament has once again revived one of the most controversial digital policy proposals in recent years. Lawmakers are revisiting the extension of the temporary Chat Control framework, which allows online platforms to scan private communications for child sexual abuse material.
If approved, the exemption from EU electronic communications privacy rules could remain in force until 2028. While the proposal primarily targets messaging platforms, it could also have significant implications for Web3 applications, decentralized services, and the broader cryptocurrency industry.
European Parliament Votes Again
According to Euronews, the European Parliament approved the use of an emergency legislative procedure, allowing lawmakers to reconsider the proposal after the previous legal framework expired in early April.
The procedural motion passed by a narrow margin, with 331 lawmakers voting in favor, 304 against, and 11 abstaining. As a result, Parliament will now hold another vote to determine whether the temporary framework should be extended.
Member of the European Parliament Markéta Gregorová criticized the move, arguing that Parliament had already rejected a similar proposal earlier this year and describing the use of the emergency procedure as unprecedented. Opponents now need an absolute majority of 361 votes to block or amend the proposal, making Thursday's vote significantly more challenging.
Largest Political Group Revives the Proposal
According to Euronews, the proposal returned to Parliament after receiving support from the European People's Party (EPP). Reports indicate that EPP leader Manfred Weber sought to advance the extension without the amendments that contributed to its previous rejection.
Meanwhile, EU member states have separately agreed to renew the temporary framework, allowing service providers to continue detecting, reporting, and removing child sexual abuse material until 2028.
Since the previous legal basis expired in April, messaging platforms such as WhatsApp have only been able to carry out such scanning voluntarily. Restoring the temporary EU framework would once again provide them with a clear legal basis for those activities.
Web3 and Crypto Projects Could Also Be Affected
The proposal may have consequences extending far beyond traditional messaging platforms. It could also impact projects offering decentralized communication services within the Web3 ecosystem.
Developers of applications that integrate messaging into crypto wallets or decentralized social platforms could be required to implement content-monitoring systems. Alternatively, they may need to disable those features for users located within the European Union.
Some industry experts also warn that similar legal reasoning could eventually be extended to blockchain transaction data and smart contract infrastructure.
Vitalik Buterin and Blockchain Industry Raise Concerns
The proposal has also drawn criticism from prominent figures within the cryptocurrency industry.
Ethereum co-founder Vitalik Buterin has previously argued that introducing systemic backdoors into encrypted communications ultimately weakens security for everyone rather than strengthening it. He has also questioned reports suggesting that certain government agencies could receive exemptions from the rules, arguing that such proposals raise concerns about regulatory consistency.
Similar warnings have been issued by the International Association for Trusted Blockchain Applications (INATBA). In its policy paper, the organization focused on client-side scanning, a technology that analyzes messages, images, and files directly on users' devices before they are encrypted.
According to INATBA, mandatory deployment of such systems could create new security vulnerabilities. Attackers could potentially target users' devices to gain access to crypto wallet seed phrases, encryption keys, or Multi-Party Computation (MPC) data.
The association also warned that mandatory scanning components could significantly increase the legal and security responsibilities of open-source wallet developers and decentralized application creators whenever vulnerabilities are discovered.
Industry representatives further argue that stricter compliance requirements could discourage the development of privacy-preserving technologies in Europe, including solutions based on zero-knowledge proofs, while encouraging blockchain developers to relocate their projects outside the European Union.
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The EU says MiCA is about protecting consumers and encouraging innovation. But for many everyday crypto users and small builders, it feels like the opposite.
Instead of making it easier to innovate, MiCA adds layers of compliance, legal costs, and bureaucracy that only the biggest companies can easily afford. Small startups, independent developers, and community projects risk being pushed aside while large corporations gain an advantage.
Crypto was built on decentralization, open access, and permissionless innovation. Overregulation risks turning that vision into a system where only those with enough money and legal resources can participate.
Protect users from scams? Yes.Punish fraud? Absolutely.But don't regulate innovation out of existence.
Europe should be leading the future of blockchain—not making entrepreneurs, developers, and investors look elsewhere.
Innovation grows through freedom, not endless paperwork.
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