NordVPN said it is considering leaving Canada if a proposed federal lawful-access bill forces the company to compromise its user privacy protections.

The potential exit of a major virtual private network provider highlights the tension between national security efforts and digital privacy rights. If the legislation passes in its current form, it could signal a shift in how Canada regulates encrypted communications and the companies that provide them.

The company is currently reviewing the federal legislation known as Bill C-22 [1]. This bill focuses on lawful access, which would require VPN services to provide backdoor access to data for government authorities [1]. NordVPN said such a requirement would undermine the privacy guarantees it provides to its global user base.

The company said its decision to remain in the Canadian market depends on whether the final version of the law mandates these privacy-weakening measures. Because the core value of a VPN is the secure, private tunnel it creates for internet traffic, any mandated backdoor would fundamentally change the service's architecture [1].

This conflict is not unique to Canada, as governments worldwide continue to debate the balance between law enforcement's need for data and the public's right to encryption. The company's stance suggests that the risk of losing trust from users outweighs the benefit of operating within the Canadian jurisdiction if the law is passed [1].

Legislators are currently weighing the implications of Bill C-22 [1]. The bill aims to modernize the tools available to investigators, but critics argue that creating vulnerabilities for law enforcement also creates vulnerabilities for cybercriminals.

NordVPN said it is reviewing the federal lawful‑access bill and would consider leaving Canada.

The threat of a market exit by a major service provider like NordVPN puts pressure on Canadian lawmakers to refine Bill C-22. If the bill is passed without amendments to protect encryption, Canada may see a 'brain drain' of privacy-focused tech companies, potentially leaving citizens with fewer secure communication options while increasing the state's surveillance capabilities.