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this policy is obviously not oriented toward preventing secure technology to be developed and distributed. Rather, its effect is that it makes its use illegale, hence providing a way for law enforcement to act over its usage upon necessity. In the UK it already is illegal to not provide a password/encryption key upon request; my understanding is that in this case, the law enforcement need some ground to make the request (e.g. threat to national security) which may be hard to prove (being the content encrypted). If you make the use of encryption itself illegal, you don't need the "national security" pretext anymore to demand access to the data.