The integration of cloud services into contemporary business operations has made the protection of sensitive data via anonymization and encryption essential for upholding privacy and adhering to international regulations. The main legal ramifications of data protection regulations like the CCPA, GDPR, and HIPAA which set strict guidelines for the handling of personal and medical data in the cloud are examined in this chapter. It dives into the obligations of cloud service providers as well as customers, highlighting the significance of compliance in order to reduce the risks of data breaches and unauthorized access, especially when transferring data worldwide. It focuses on methods like data masking, aggregation, and tokenization that obscure or remove identifiers. © 2025, IGI Global Scientific Publishing. All rights reserved.