Canada has introduced Bill C-2, a broad piece of legislation aimed at strengthening border security and combating financial crime.
👉 Read Bill C-2 (First Reading)
At a high level, the goals are clear: reduce illicit activity, improve enforcement, and modernize Canada’s response to evolving threats.
But as with many large-scale security laws, the details matter, and some aspects are raising important questions about privacy and secure communication.
What Bill C-2 aims to do
Bill C-2 (often referred to as the Strong Borders Act) introduces changes across multiple areas, including:
- Anti-money laundering enforcement
- Border security measures
- Expanded investigative and compliance powers
These updates are designed to address increasingly complex global crime networks and financial systems.
Where concerns begin to emerge
While much of the bill focuses on financial oversight, broader analysis suggests it could also expand how authorities access and use data—particularly in digital environments.
That includes potential implications for:
- Online services and communication platforms
- Data sharing between agencies
- Subscriber and identity-related information
Even if not explicitly targeting encryption, the structure of such laws can shape what becomes possible in the future.
A wider conversation about lawful access
The debate around “lawful access” isn’t new, and it’s not unique to Canada.
Organizations like the Internet Society have raised concerns about similar proposals in Canada, including past efforts such as Bill C-22.
Internet Society Keep Canada Protected campaign
Their position is clear: introducing mechanisms that weaken encryption or create access pathways—even with good intentions—can create broader risks.
One of their key arguments is simple:
You cannot create a backdoor that only “good actors” can use.
Any system designed to allow access can potentially be exploited, by cybercriminals, foreign actors, or unintended vulnerabilities.
Why encryption matters more than ever
Encryption isn’t just a technical feature, it underpins everyday digital life.
It protects:
- Private conversations
- Financial transactions
- Healthcare data
- Business communications
Weakening that protection, even slightly can have wide-reaching consequences.
The Internet Society and other experts argue that:
- Security failures often happen due to human error, not intent
- Introducing access mechanisms increases the attack surface
- A single vulnerability can have system-wide impact
Economic and security implications
Beyond privacy, there’s also a broader impact to consider.
Policies that reduce trust in digital systems can affect:
- Consumer confidence in online services
- Business willingness to operate in certain jurisdictions
- Costs related to cybersecurity incidents
Canada’s digital economy depends heavily on secure infrastructure. Any perception that systems are less secure can ripple across industries.
A global trend in motion
Canada’s approach reflects a broader international pattern.
Countries within the Five Eyes alliance including the U.S., UK, and Australia—have introduced laws expanding surveillance or data access in recent years.
Examples include:
- The Online Safety Act
- Australia’s Telecommunications and Other Legislation Amendment (TOLA)
- The U.S. Foreign Intelligence Surveillance Act
Each has sparked debate about where the line should be drawn between security and privacy.
The challenge: security vs. trust
Governments argue that stronger powers are necessary to:
- Combat financial crime
- Prevent terrorism
- Address organized criminal networks
At the same time, critics highlight a key issue:
Trust cannot exist if users believe their private communications may be accessed through unclear or evolving rules.
Clear safeguards, transparency, and oversight are essential.
Why this matters to you
Even if you’re not directly impacted by compliance rules, legislation like Bill C-2 shapes the digital environment you rely on every day.
It influences:
- How securely your email and messages are handled
- What data companies may be required to share
- How privacy protections evolve over time
Potential Implications of Bill C-2
While Bill C-2 is primarily focused on border security and financial crime, some analysts and advocacy groups have raised concerns about how certain provisions could affect privacy, due process, and data protection over time.
Expanded access to digital data
Proposed changes may lower thresholds for accessing certain types of user data in investigations. Critics argue that this could increase the amount of information law enforcement can request from service providers, depending on how the law is interpreted and applied.
Increased obligations for service providers
Companies may face new requirements around retaining and providing user data. In some cases, these obligations could be accompanied by confidentiality requirements, limiting transparency around when and how data is requested.
Cross-border data considerations
Bill C-2 also aligns Canada more closely with international frameworks for sharing data related to crime and security. While intended to improve cooperation, this raises questions about how Canadian user data may be accessed across jurisdictions and what safeguards apply.
Legal and oversight questions
Some critics point out that timelines and processes for challenging certain types of orders may be limited, and that strong oversight mechanisms will be essential to ensure accountability.
Thexyz perspective
At Thexyz, we believe:
- Strong encryption should remain strong
- Privacy should be preserved by design
- Transparency is essential for trust
We support efforts to combat crime, but not at the expense of weakening the tools that keep people and businesses secure.
Final thoughts
Bill C-2 is still progressing through the legislative process, and its final impact will depend on how it is implemented and interpreted.
But the broader conversation is already here:
- How much access is too much?
- How do we balance safety with privacy?
- And what kind of digital future do we want to build?
Because once surveillance capabilities are introduced, they rarely disappear.
Staying informed, and engaged, is more important than ever.
