Possibly missing the point.
Governments want to criminalise everyone so they can prosecute anyone they want, for something or other. Instead of blacklisting things they don't want, they are now whitelisting what is permitted. Everything new will therefore be illegal until governments license it. It gives them control by default.
They got caught out by the net and the pace of technological change. This fixes that. Do something new, henceforth, and they can arrest you if they stumble upon it and it worries them. In general, they won't bother you. It's how China works. Soon it will be how the West works.
And it's not optional. They are taking back control.
I guess it's possible to develop within the EU for use outside the EU with some tweaks. The next killer app may be a viable regional ban for code, so governments can ban anything they want from any country they want. It's do-able already to some extent, but they will want to enforce use of it. Only UK code working within the UK within UK law. Only EU code working within the EU within EU law. Nothing crossing borders.
Government-funded academics have been working on 'national' data for some years - data packets that are region marked, like a DVD. They can't leave the UK, and data packets from elsewhere are erased. It's not rocket science to add region markers to data packets.