US Department of Commerce Proposes End to Cloud Service Anonymity

Introduction

The US Department of Commerce has proposed a new rule that could potentially end the anonymity of users of cloud services. This proposal was first made public in January, as per certain documents. The new rules, titled "National Emergency with Respect to Significant Malicious Cyber-Enabled Activities," are aimed at Infrastructure as a Service (IaaS) providers. These rules include Know Your Customer (KYC) regulations, which are typically enforced by banks and financial institutions.

Reason for the Proposal

The US government is justifying this proposal by citing concerns over "malicious foreign actors" who use these services. As a result, the government is looking to end anonymity on the cloud, even for those who are only signing up for a trial. Another proposal suggests barring access to US cloud services for individuals identified as "foreign adversaries."

Impact on US Citizens

While the justification for these measures is the threat from foreign entities, US citizens are likely to be affected as well, given the nature of the infrastructure. The proposal could result in everyone being denied the right to anonymity to address issues caused by a few users.

Industry Perspective

From the perspective of the government and the industry, especially major players like Amazon, this proposal could be beneficial. These entities could easily implement the identification feature, gaining a valuable new source of personal data in the process.

Concerns for IaaS Users

However, this proposal could negatively impact users of IaaS platforms. These users would have to allow tech giants another avenue to access their sensitive personal information, increasing the risk of data leaks. Furthermore, the proposal may not deter the actual malicious actors who could potentially misuse leaked personal data.

Current Practice

Until now, cloud service providers have not felt the need to implement a KYC regime. They have allowed people to become users or try their products by simply providing an email and a valid credit card if they signed up for a plan. The proposal's definition of an IaaS is broad and includes services providing processing, storage, networks, content delivery networks, virtual private servers, proxies, domain name resolution services, and more.

Closing Thoughts

This proposal from the US Department of Commerce certainly raises some important questions about the balance between security and privacy. While the intention to protect against malicious foreign actors is understandable, the potential impact on the privacy of all users is a cause for concern. What are your thoughts on this proposal? Do you think it's a necessary step for security, or does it infringe too much on individual privacy? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.