diff --git a/src/components/structures/MatrixChat.tsx b/src/components/structures/MatrixChat.tsx
index afd444c9524..e51dd966475 100644
--- a/src/components/structures/MatrixChat.tsx
+++ b/src/components/structures/MatrixChat.tsx
@@ -427,7 +427,7 @@ export default class MatrixChat extends React.PureComponent<IProps, IState> {
             }
         } else if (
             (await cli.doesServerSupportUnstableFeature("org.matrix.e2e_cross_signing")) &&
-            !shouldSkipSetupEncryption(cli)
+            !(await shouldSkipSetupEncryption(cli))
         ) {
             // if cross-signing is not yet set up, do so now if possible.
             this.setStateForNewView({ view: Views.E2E_SETUP });
diff --git a/src/utils/crypto/shouldSkipSetupEncryption.ts b/src/utils/crypto/shouldSkipSetupEncryption.ts
index 51d7a9303c1..3d5eef90348 100644
--- a/src/utils/crypto/shouldSkipSetupEncryption.ts
+++ b/src/utils/crypto/shouldSkipSetupEncryption.ts
@@ -9,6 +9,7 @@ Please see LICENSE files in the repository root for full details.
 import { MatrixClient } from "matrix-js-sdk/src/matrix";
 
 import { shouldForceDisableEncryption } from "./shouldForceDisableEncryption";
+import { asyncSome } from "../arrays.ts";
 
 /**
  * If encryption is force disabled AND the user is not in any encrypted rooms
@@ -16,7 +17,13 @@ import { shouldForceDisableEncryption } from "./shouldForceDisableEncryption";
  * @param client
  * @returns {boolean} true when we can skip settings up encryption
  */
-export const shouldSkipSetupEncryption = (client: MatrixClient): boolean => {
+export const shouldSkipSetupEncryption = async (client: MatrixClient): Promise<boolean> => {
     const isEncryptionForceDisabled = shouldForceDisableEncryption(client);
-    return isEncryptionForceDisabled && !client.getRooms().some((r) => client.isRoomEncrypted(r.roomId));
+    const crypto = client.getCrypto();
+    if (!crypto) return true;
+
+    return (
+        isEncryptionForceDisabled &&
+        !(await asyncSome(client.getRooms(), ({ roomId }) => crypto.isEncryptionEnabledInRoom(roomId)))
+    );
 };
diff --git a/test/unit-tests/components/structures/MatrixChat-test.tsx b/test/unit-tests/components/structures/MatrixChat-test.tsx
index 16106ee0d22..b3766bfc896 100644
--- a/test/unit-tests/components/structures/MatrixChat-test.tsx
+++ b/test/unit-tests/components/structures/MatrixChat-test.tsx
@@ -146,7 +146,6 @@ describe("<MatrixChat />", () => {
         matrixRTC: createStubMatrixRTC(),
         getDehydratedDevice: jest.fn(),
         whoami: jest.fn(),
-        isRoomEncrypted: jest.fn(),
         logout: jest.fn(),
         getDeviceId: jest.fn(),
         getKeyBackupVersion: jest.fn().mockResolvedValue(null),
@@ -1011,6 +1010,7 @@ describe("<MatrixChat />", () => {
                     userHasCrossSigningKeys: jest.fn().mockResolvedValue(false),
                     // This needs to not finish immediately because we need to test the screen appears
                     bootstrapCrossSigning: jest.fn().mockImplementation(() => bootstrapDeferred.promise),
+                    isEncryptionEnabledInRoom: jest.fn().mockResolvedValue(false),
                 };
                 loginClient.getCrypto.mockReturnValue(mockCrypto as any);
             });
@@ -1058,9 +1058,11 @@ describe("<MatrixChat />", () => {
                             },
                         });
 
-                        loginClient.isRoomEncrypted.mockImplementation((roomId) => {
-                            return roomId === encryptedRoom.roomId;
-                        });
+                        jest.spyOn(loginClient.getCrypto()!, "isEncryptionEnabledInRoom").mockImplementation(
+                            async (roomId) => {
+                                return roomId === encryptedRoom.roomId;
+                            },
+                        );
                     });
 
                     it("should go straight to logged in view when user is not in any encrypted rooms", async () => {