Last week, Kim Dotcom said his new service, Mega, would launch on January 19, 2013. The day will mark a year since U.S. authorities shut down Megaupload. Details of the new service have been sparse, but today Dotcom did made a grand announcement on his website and explained how the new service will work.

As previously reported, Mega will encrypt any files uploaded to its servers and only the uploader will be given the encryption key. If someone else wants to download the file that person will need the key or the file is useless. This is meant to save Dotcom's ass if the service is used to host illegal or copyrighted files. 

According to the site, the company has " raised sufficient funds to cover the launch," but is currently looking for investors to help make the service free for "as long as possible." It's also looking for hosting partners with 20 TB of space, quality RAID controllers, at least 4 GB of RAM and a 1 Gbps uplink speed. Oh, there's one other catch. 

Mega, the site says, will not use any servers or hosting companies based in the U.S. "Safe harbour for service providers via the Digital Millennium Copyright Act has been undermined by the Department of Justice with its novel criminal prosecution of Megaupload," read the site. "It is not safe for cloud storage sites or any business allowing user-generated content to be hosted on servers in the United States." 

Dotcom's not trying to go back to jail.

Head to to read more about Mega.

[via The Guardian]