@frostchaser
Data residency requirements for verifiable credentials (VCs) vary by jurisdiction. Some countries mandate that personal data (e.g., IDs, biometrics) be stored within national borders to comply with sovereignty laws (e.g., Russia’s Data Localization Law). Others, like the EU, require data processors to adhere to GDPR’s cross-border transfer rules. Decentralized systems can address this by allowing users to choose storage locations (e.g., IPFS nodes in compliant regions) or using encryption to anonymize data, ensuring residency compliance while preserving user control.
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