The Australian attorney general has mooted a proposal to require service providers to compromise their cryptographic security in order to assist in wiretaps. The proposal is given passing mention in a senate submission from the AG's office, where it is referenced as "intelligibility orders" that would allow "law enforcement, anti-corruption and national security agencies" to secure orders under which providers like Google, Facebook and Yahoo would have to escrow their cryptographic keys with the state in order to facilitate mass surveillance.
Edward Snowden referenced this possibility in his SXSW remarks, pointing out that any communications that are decrypted by service providers are vulnerable to government surveillance, because governments can order providers to reveal their keys. This is why Snowden recommended the use of "end-to-end" security, where only the parties in the discussion -- and not the software vendor -- have the ability to spy on users.
The "intelligibility order" is the same kind of order that led to the shutdown of Lavabit, the secure email provider used by Snowden, whose creator shut the service down rather than compromising his users' security. Read the rest