Well most of what he said is false:
It would just make mIRC illegal to use in the US most probably, which, is a big reason for Khaled not to do it, but hardly 100% compelling...
Thats completely and totally wrong. ANYONE living in the US can use ANY encryption without ANY restrictions on the use. There are no laws saying you can't use encryption, or that you can't import it, in the US. There are laws about exporting it. So the whole part about illegal to use in the US is completely false.
But anyway, I'm not saying anything about what would happen in the UK, because the answer is likely nothing. Even if the US did complain to the UK they'd likely do nothing. But #1 that doesn't mean "nothing will happen" for example, mirc.com is US based. If the US government decided that mirc.com is being used to illegally export software, you can be very sure that the domain would be closed and redirected to a DoJ website. Additionally, the individual mirror owners could get in trouble. You think the mirror owners would be willing to donate their bandwidth if Khaled is asking them to perform a crime?
Oh also forgot, some countries do also ban encryption, China for instance. China does not allow encryption of any kind, therefore mIRC would be banned in China meaning mIRC just removed a potential 1 billion customers by adding SSL support.
