UK companies would face potentially huge damages if the key got into the wrong hands, and electronic instructions, such as money transfers, were intercepted by a criminal third party. The industry wants the government to indemnify it against such claims. Instead, the government should prevent such claims occuring in the first place. It could do worse than look to the example of Ireland, where the new e-commerce bill will not allow law enforcement agencies to require the disclosure of private keys in any circumstances. Better still, the UK government should scrap this ill-considered bill in its entirety.
Cybercrime is a serious issue.
But it is also a global problem, demanding global solutions - the Home Office should concentrate its efforts on the international arena.