Internet tycoon Kim Dotcom has launched a privacy cloud storage service with user-controlled encryption – protecting users from third-party ‘spies’.

New site, provides cloud storage with an ‘always-on privacy’. Unlike the industry norm, where the cloud storage provider holds the decryption key, Mega’s User Controlled Encryption (UCE) allows those that register to have total control.

Dotcom said: “What we are offering is a faster, smarter and more secure way of cloud storage and we are fully assured by our legal team that we are in compliance with the law.

“By using Mega you say no to governments that want to spy on you and by using mega you say yes to internet freedom and your right to privacy.”

The German-Finnish internet entrepreneur, who currently lives in New Zealand, hit headlines last year after his home was raided by New Zealand police.

Police close Megaupload

The police swoop was in response to US charges of criminal copyright infringement in relation to his Megaupload website, which offered users online services related to file storage and viewing.

Last January all domain names and sites associated with Megaupload were seized and shut down by the US Department of Justice, and Dotcom, who denies the charges, remains on bail.

The warrants were later found to be invalid and even the prime minister issued an apology to Dotcom after a law enforcement agency was found to have illegally spied on him.

Lavish launch of

The elaborate launch of took place earlier this week at Dotcom’s New Zealand mansion and featured a re-enactment of last year’s raid – complete with fake SWAT team and a helicopter.

Dotcom, who believes the US Government is investing millions into ‘spy clouds’, said the new service is just as legitimate and has the right to exist as Dropbox, Boxnet and other competitors.

The new service offers users up to 50GB of free storage space and so far, in just four days, more than half a million users have registered.

User encrypted browsers?

Dotcom went onto say that the Mega cloud is just the beginning, and future plans include UCE in browsers, without the need to install anything. “Our technology will protect your emails, calls, chats and video streams,” he added.

A hearing on whether he can be extradited to the US has now been delayed until August.

Will you be signing up? Check out Dotcom’s lavish launch video below:

[Image via digitaltrends]