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Signal Threatens to Exit Canada Over Encryption-Busting Bill C-22

Signal Threatens to Exit Canada Over Encryption-Busting Bill C-22

Signal's vice president of strategy said the company would rather pull out of the country than comply with Bill C-22, a proposed Canadian law that could force messaging apps to break end-to-end encryption. The statement, made this week, puts the encrypted messaging service on a collision course with Ottawa as the bill moves through Parliament.

What Bill C-22 would require

The legislation, formally called the Online Harms Act, aims to combat child sexual abuse material and terrorist content online. Critics say it would compel platforms to scan private messages — effectively gutting the encryption that protects users from surveillance. The bill gives the government power to order companies to develop tools to detect and remove prohibited content, which security researchers argue cannot be done without creating a backdoor.

Signal's red line

Signal, which markets itself as the gold standard for private communication, has long refused to weaken its encryption for any government. The vice president of strategy didn't mince words: leaving Canada entirely is on the table rather than complying. The company has fewer than 100 employees, but its app is used by millions worldwide, including journalists, activists, and political dissidents. A Canadian exit would mean shutting down servers and blocking users in the country, though the company could also challenge the law in court.

The broader encryption fight

This isn't the first time Signal has drawn a line. The company has previously threatened to leave the UK over the Online Safety Bill, which similarly targets encryption. Other tech giants like Apple and WhatsApp have pushed back against similar laws, arguing that weakening encryption for one purpose makes it vulnerable for all. Canada's approach is seen as a test case; if Bill C-22 passes, other governments may follow with their own demands.

Supporters of the bill say it strikes a balance between privacy and child protection. They point to existing scanning systems in some platforms — but those systems rely on client-side scanning, which encryption advocates say is equally dangerous. The debate has grown heated, with civil liberties groups warning that the law could turn private messaging into a surveillance tool.

Signal's threat is a direct challenge to lawmakers. The company has no lobbying presence in Ottawa and little patience for compromise. Its stance is clear: encryption is non-negotiable, even if it means losing an entire market.

What comes next

The bill is currently before the House of Commons, with committee hearings scheduled for the fall. Signal has not said whether it would challenge the law legally or simply leave. The vice president of strategy noted that the company would make a final decision once the legislation is passed. For now, Canadian users remain on the platform, but the clock is ticking.