Boom
Securities Ltd., Hong Kong’s first online broker, has acquired
128-bit
encryption ability through a special program provided by
California-based
VeriSign, Inc., according to
Boom’s
chief executive officer, Mark Duff.
128-bit encryption is the highest form of online security available
and,
outside of the United States, it is difficult to get because of the
U.S.
government’s strict export laws concerning the technology.
“What we have just done is gone out and bought a full metal jacket for
every message we send,” said Duff.
“Research has shown us that a lot of potential consumers [in Hong
Kong] are
reluctant to use the Internet for financial transactions,” added Duff.
“What we’ve done to dilute their concerns is buy the highest level of
security encryption on the market.”
“This is monumental because the U.S. Government has classified the
security
encryption as strategic.”
It is allegedly the first utilization of 128-bit encryption by a Hong
Kong
company.
The use of the technology is possible through a U.S. Department of
Commerce
interim
rule
(RIN 0694-AB80) that amends the controls on certain exports and
re-exports
of encryption commodities and software.
One of provisions in the rule (3e) permits export of encryption
technology
of any key length for online merchants in all countries except Cuba,
Iran,
Iraq, Libya, North Korea, Sudan and Syria.
According to the provision, “. . .such commodities and software must
be
limited to client-server applications (e.g., Secure Socket Layer (SSL)
based applications) or
applications specially designed for on-line transactions.”
This allows VeriSign and other American security vendors to provide
128-bit
SSL sessions to foreign companies like Boom Securities.
Through its Global Server ID program, VeriSign provides this service
to
companies with Netscape Communicator Clients or configured Microsoft
Internet Explorer Clients.
In October of last year, Novell,
Inc.
received special permission from the U.S. Government to export its
BorderManager Virtual Private Network with 128 Bit Encryption.
