Data residency laws require that companies operating in a country keep data about its citizens on servers located in that country. For companies that have customers or employees in multiple countries, the regulatory requirements can be onerous and difficult to keep up with.
Previously, “safe harbor” laws or tokenization-based approaches helped companies address the issue, but recent regulatory changes have made both approaches less workable. Meanwhile, countries like China, Russia and Brazil have been making changes to their data residency requirements.
