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Question: What did you lose? Answer: Spam, and (possible) liability for illegal activities being organised over your mud.
As pointed out previously, it's no different from asking players to communicate only in English (or whatever language your mud uses). When the majority of players can't understand what's being said over the global channels then all that encryption-happy minority are doing is spamming the other players with gibberish. And if your global channels are busy anyway, that's really not something you want to promote.
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