Psiphon and Signal threaten to leave Canada over encryption backdoor laws

Privacy companies are threatening to withdraw their services from Canada unless the government abandons a proposed surveillance law. The legislation would require companies to weaken encryption or retain more user data. Psiphon, which helps people bypass internet censorship, stated it will leave the country if the bill becomes law. Signal also announced it would exit the Canadian market because the rules would force unacceptable changes to its open-source code.

In plain English

Encryption scrambles your data so only you and the intended recipient can read it. A backdoor is a secret way for someone else, like a government, to unlock that scrambled data. Security experts say you cannot build a backdoor that only good guys can use. If a backdoor exists, hackers and criminals will find it too. Forcing companies to create these flaws makes everyone less safe online.

The background

Canada is not alone in considering these laws. Many democratic nations are proposing similar changes to give police and intelligence agencies more power to access private information. According to WIRED Security, governments already have broad surveillance tools. However, new bills often demand even more access by mandating additional logging of user activity. This creates intentional flaws in digital products that security engineers have warned against for decades.

What changes now

If the bill passes, several major tech companies may stop operating in Canada. Apple and Meta have publicly criticized the proposal. DuckDuckGo and NordVPN said they would consider removing their services. Kate Robertson, a researcher at the University of Toronto’s Citizen Lab, noted that some officials view technology as a crime scene. This mindset drives the desire for unrestricted access to private data, regardless of the security risks involved.

Key terms explained

When facing laws that weaken security, teams usually check whether their software can be modified to comply without breaking its core safety features. Look for clear statements from vendors about their refusal to create backdoors. Understand that mandatory data retention means companies must keep records of your activity, even if the content is encrypted. This increases the amount of personal information available to attackers if systems are breached.

What to do and how to stay safe: Psiphon

• Check if your privacy tools are based in jurisdictions with weak encryption laws.
• Read vendor statements to see if they plan to exit markets with backdoor mandates.
• Monitor news for updates on the status of the Canadian surveillance bill.
• Consider using services that have publicly committed to resisting government backdoor requests.

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General security guidance from the Vector Update newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

Which companies have threatened to leave Canada?

Psiphon and Signal have said they will exit. DuckDuckGo and NordVPN are considering it. Apple and Meta have criticized the bill.

Why do experts oppose encryption backdoors?

Cryptographers and security engineers say backdoors cannot be built safely. They create vulnerabilities that criminals can exploit, weakening security for all users.

What is the goal of the new Canadian law?

The law aims to give police and intelligence agencies greater powers to access people’s information by mandating data retention and potential backdoors.