Not so fast. Recall that India has implemented a similar regulation. Remember the whole dispute with RIM a while back? From the linked article:
the ISP license also bans internet providers from deploying 'bulk encryption' and further restricts the level of encryption for individuals, groups or organisations to a key length of only 40 bits in symmetric key algorithms or equivalents. Such weak encryption is easily broken, highly insecure and not suitable for e-commerce or any other sensitive applications. For the use of encryption equipment stronger than 40 bits, individuals, groups or organisations are required to obtain prior written permission and to deposit the decryption key, split into two parts, with the Department of Telecommunications.
One of the most overlooked advantages to computers is... If they do foul up, there's no law against whacking them around a little. -- Joe Martin