The internal policy of a private bank mandates that all digital customer data be subject to the laws of the country in which the data is processed. To which concept does this policy relate?
Answer A: data sovereignty is the more accurate term because the policy is about the jurisdiction of the country governing the data processing, not necessarily about where the data is stored (which would be data localization).
Data sovereignty is the idea that data is subject to the laws and regulations of the country or region where it originates. It's closely related to data localization, which is the practice of storing data within the physical boundaries of a country or region where it originated.
Data sovereignty is important because it ensures that user data is regulated by the legal framework in place where those users are citizens. It also gives countries control of data created and stored within their borders.
Some examples of data sovereignty include:
The General Data Protection Order (GDPR): From the European Union (EU), which defines how the data of EU citizens is protected
C. Data localization: Data localization refers to the practice of storing and processing data within specific geographic boundaries, often dictated by legal or regulatory requirements. In this case, the bank's policy mandates that data be subject to the laws of the country where it's processed, aligning with the concept of data localization.
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