diff --git a/lib/libzfs/libzfs_crypto.c b/lib/libzfs/libzfs_crypto.c
index fe3a0f283..47d232c92 100644
--- a/lib/libzfs/libzfs_crypto.c
+++ b/lib/libzfs/libzfs_crypto.c
@@ -960,7 +960,7 @@ zfs_crypto_create(libzfs_handle_t *hdl, char *parent_name, nvlist_t *props,
 		}
 
 		ret = populate_create_encryption_params_nvlists(hdl, NULL,
-		    B_FALSE, keyformat, keylocation, props, &wkeydata,
+		    B_TRUE, keyformat, keylocation, props, &wkeydata,
 		    &wkeylen);
 		if (ret != 0)
 			goto out;