Why would it?
It doesn’t matter where its hosted
The EU is trying to do this at an EU level (and has been for years). As well as an individual country level, Sweden seems likely to pass a similar law in 2026.
https://www.theregister.com/2025/02/26/signal_will_withdraw_from_sweden/
https://www.wired.com/story/europe-break-encryption-leaked-document-csa-law/
That’s not nice