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UK government drops plans to license encryption service providers

By Sally Watson

Published: 1 July 1999 12:40 BST

The UK government has dropped its plans to license encryption service providers, according to report in today's Financial Times.

The Department of Trade and Industry (DTI) had planned to issue an official seal of approval to encryption agencies to help boost consumer and business confidence in the safety of online services. But industry leaders pushed the DTI to drop the proposals from the forthcoming ecommerce Bill - now called the Electronic Communications Bill.

A Trade and Industry select committee report published in May said the licensing scheme ran the risk of being a "damaging and embarrassing failure".

It now seems likely that the government will support an industry accreditation scheme instead.

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