I think that in this case what makes your story incorrect is that banning encryption software will only prevent normal every day people from using it. With the

I think that in this case what makes your story incorrect is that banning encryption software will only prevent normal every day people from using it. With the vastness of the internet, there is no way for any government to prevent encrypted communications from any determined individuals. All they can end up doing is preventing the everyday users of the mass services from using encrypted transmission. So the innocent lose freedoms but the guilty carry on as normal.