The European Parliament has activated an urgent review procedure for a re-vote on extending temporary regulations that have earned the unflattering nickname "chat control" within the crypto community and among human rights advocates. The decision for a new round of discussion has been made, with the key vote scheduled for July 9, 2024.
The initiative to expedite the process was supported by 331 lawmakers, while 304 voted against it, and 11 abstained. It is important to understand: to reject or make significant changes to the proposal, an absolute majority of 361 votes is required. This means that the current balance of power is merely a preliminary stage, and the outcome will be decided on the day of the vote itself.
The essence of the controversial rules boils down to the possibility of mass scanning of encrypted messages (including messengers with end-to-end encryption) to identify potentially illegal content. For the crypto industry and private payment systems, this is a direct signal: not only is the confidentiality of correspondence under threat, but also the very concept of decentralized and anonymous transactions. If "chat control" is adopted, we could see a precedent for similar restrictions on crypto wallets and decentralized applications (dApps).
At the moment, the market is reacting cautiously, but I predict that a negative outcome of the July 9 vote will trigger a short-term correction in the privacy coin segment (Monero, Zcash) and increase regulatory risks for European crypto projects. Keep an eye on the dynamics — this is not just a political dispute, but a direct threat to the fundamental principles of the crypto ecosystem.