Breaking news

Britain’s Dangerous Move: A New Threat To Apple Users’ Encrypted Data

In a controversial move that could reshape the future of privacy, British authorities are pushing Apple to build a backdoor that would allow them access to encrypted iCloud backups. This unprecedented request could give UK security services a global window into every iCloud user’s data, with Apple unable to notify users that their encryption has been compromised.

Key Takeaways

The UK has demanded Apple grant access to encrypted data stored in its iCloud, marking a significant escalation in government surveillance. The request was reported by The Washington Post and comes in the form of a technical capabilities notice. Revealing these details, under the current law, is considered a criminal offense.

What’s At Stake

While it’s not uncommon for governments to request user data from tech companies in criminal investigations, the scale of the UK’s demand is extraordinary. For the first time in democratic countries, the request extends far beyond individual accounts, calling for global access to encrypted data stored by all iCloud users.

This move is grounded in the secret warrant issued last month under the Investigatory Powers Act of 2016—better known as the Spy Charter. This legislation enables UK government agencies to collect vast amounts of online data and even compel private firms to store it for surveillance purposes.

The UK’s authorities are not just interested in a specific user’s data but have demanded general access to end-to-end encrypted information uploaded by every iCloud user worldwide.

A Potential Game-Changer

Although iCloud backups are not encrypted by default, many users opt for additional protection, such as two-factor authentication. A smaller group goes further, enabling Advanced Data Protection, which encrypts the data in such a way that even Apple can’t access it.

In light of the UK’s order, Apple is likely to stop offering the Advanced Data Protection feature to users in the UK. However, this move will still fall short of meeting the government’s demand for unrestricted access to data, as The Verge notes.

What Comes Next

Apple has the option to challenge the order, potentially citing the high cost of implementation or questioning the fairness of the demand. However, this appeal won’t halt the order’s immediate implementation. If Apple complies, the UK will have set a dangerous precedent—one that could prompt other nations, such as the US and China, to demand similar access. The tech giant now faces a difficult decision: comply with the order or remove encryption services altogether. And given the global nature of tech companies, other firms are likely to find themselves in the same situation soon.

The Security Debate

Apple introduced end-to-end encryption in 2022, offering users the ultimate in data protection. However, UK authorities have consistently criticized the move, citing concerns that encryption could facilitate illicit activities, such as terrorism and child exploitation. Similar objections have been voiced by US agencies like the FBI, although some agencies are now advocating for stronger encryption as a defense against cyberattacks linked to China.

As the battle between privacy advocates and security agencies intensifies, the outcome of this case could have far-reaching consequences for global digital security.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

The Future Forbes Realty Global Properties
eCredo
Aretilaw firm
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter