Hmm -- I wonder the legality around banning of encrypted data storage on the cloud (not clear if amazon is actually banning it here, but sort of smells like it

Hmm -- I wonder the legality around banning of encrypted data storage on the cloud (not clear if amazon is actually banning it here, but sort of smells like it could happen).. if they ban it, the basic implication would be that your data is somehow expected to be parsed / inspected / analyzed by some algorithm or the government etc. Are there providers out there that have tried to ban having encrypted data on their servers and thats considered ok in US / EU for example?