That's a problem because an antiquated regulatory regime classifies cryptographic software as a munition and requires approval from federal regulators before it can be exported abroad. Lemmey says the government shutdown means the company can't get its application approved, which means it can't legally offer its product outside the United States.
"The first thing people started asking about is whether we can call internationally," Lemmey says. But the Department of Commerce's Bureau of Security and Industry needs to sign off on the app before it can be offered overseas. Normally, that's a "fast process," Lemmey says, but the shutdown changes that.
The agency's Web site says that "all pending export license applications, commodity classification requests, encryption reviews, encryption registrations, and advisory opinion requests will be held without action by BIS until the shutdown ends."