diff --git a/copy/copy.go b/copy/copy.go
index 9bc479d23..11d82ad72 100644
--- a/copy/copy.go
+++ b/copy/copy.go
@@ -1620,6 +1620,7 @@ func (c *copier) copyBlobFromStream(ctx context.Context, srcStream io.Reader, sr
 			finalizer = fin
 			inputInfo.Digest = ""
 			inputInfo.Size = -1
+			inputInfo.CryptoOperation = types.Encrypt
 			encrypted = true
 		}
 	}
diff --git a/docker/docker_image_dest.go b/docker/docker_image_dest.go
index 84694e157..bf84d6a5c 100644
--- a/docker/docker_image_dest.go
+++ b/docker/docker_image_dest.go
@@ -205,7 +205,9 @@ func (d *dockerImageDestination) PutBlob(ctx context.Context, stream io.Reader,
 	}
 
 	logrus.Debugf("Upload of layer %s complete", computedDigest)
-	cache.RecordKnownLocation(d.ref.Transport(), bicTransportScope(d.ref), computedDigest, newBICLocationReference(d.ref))
+	if inputInfo.CryptoOperation != types.Encrypt {
+		cache.RecordKnownLocation(d.ref.Transport(), bicTransportScope(d.ref), computedDigest, newBICLocationReference(d.ref))
+	}
 	return types.BlobInfo{Digest: computedDigest, Size: sizeCounter.size}, nil
 }