An IT expert accused of child pornography charges will remain behind bars as authorities try to extract evidence from his covert, encrypted email account based in Canada.
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Police also expect to lay further charges against the man for child pornography and alleged acts of indecency against his young daughter.
The 36-year-old, who cannot be named, was arrested in Adelaide while at a business conference, and was extradited to the ACT on Monday.
He has been charged with using a carriage service to transmit child pornography, and police have seized the man's computers, USB sticks, smart phones, hard drives, and a number of emails.
The investigation is still in its early stages and prosecutors opposed bail for the man, fearing his IT knowledge may help him "cover his tracks" and interfere with evidence not yet secured by federal authorities.
The Australian Federal Police is still attempting to crack open his Hushmail web-based email account, a secure and heavily encrypted service based in Canada.
The court heard that email account - which automatically deletes itself if it is not accessed in three weeks - was used to converse with undercover police.
A police informant said she expeted there would be further evidence on the email account, but that authorities faced a "lengthy" and "complicated" process of gaining access.
Commonwealth prosecutors opposed bail for the man, saying he was at risk of interfering with evidence and witnesses, was a risk of reoffending, and may attempt to threaten or harass witnesses.
The court heard the man's wife feared he may try to manipulate her if released.
But defence barrister James Lawton said the man was willing to give over the password to the Hushmail account, had been fully cooperative with investigations, and had no prior criminal history.
Mr Lawton said any concerns about interfering with witnesses could be dealt with through bail conditions.
He said that the man ran a business that a number of employees relied upon.
Magistrate David Mossop refused bail for the man, saying the risk of interfering with evidence at such an early stage of the investigations was too great.
"That is not just a speculative risk, but a very live risk," Mr Mossop said.
The man will appear before the Magistrates Court again on Friday, when he is expected to make another application for bail.
