What are the laws concerning encryption and digital signatures?
In North Carolina, there are laws concerning encryption and digital signatures that must be followed by users of any technology. The legal requirements for encryption and digital signatures are outlined and enforced by the North Carolina Electronic Transactions Act (NCETA). This law states that any type of digital signature or encryption must provide a minimal level of security that is accepted to be valid in a court of law. Additionally, the law requires that the encryption method must be “at least as secure as any other method generally accepted in the marketplace”. In addition to the NCETA, North Carolina also has the Electronic Signatures in Global and National Commerce Act (ESIGN) which requires that any digital signature or encryption must be accepted as legally valid and binding in the state. Similarly, any contracts, agreements, or other transactions created using digital signatures or encryption must be legally enforceable in the state. This law additionally outlines that any digital signature or encryption must be protected from unauthorized access or alteration. In North Carolina, these laws are in place to ensure businesses and consumers are secure while engaging in electronic transactions via encryption or digital signatures. Not abiding by these laws can result in criminal penalties and even lawsuits. For these reasons, it is important for anyone engaging in electronic transactions with encryption and/or digital signatures to be aware of, and compliant with, the laws relating to encryption and digital signatures in North Carolina.
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