Very interesting.
I'm making a decentralised open source sharing protocol (have your free cloud drive, website, ...) and I very often gets the question about what if my node shares some illegal stuff (because when someone shares yours, you share theirs)?
It's all encrypted so a node cannot know what it shares, and if someone asks you to take down abc.xyz then we'll do it and it should be the end of the story.
Seems that's what it would be in the UK at least (and the rest of the EU usually doesn't have harsher laws for what I know), what are your thought?