The Biden administration is reportedly getting set to launch a new licensing program aimed at companies who are making bulk sales and transfers of sensitive personal data to China and other nations considered to pose national security risks. Initiated as part of the President’s continued efforts to regulate the exchange of data, this new plan is seen as a strategic move to ensure cybersecurity and further protect the privacy of American citizens.
According to a proposal by the U.S Department of Justice, bulk transfers conducted by data brokers, as well as human genomic data, would be banned from transmission to six specified countries. Furthermore, transactions that are considered to be “restricted” – typically those performed by entities such as cloud service providers – would be expected to meet certain security standards. These requirements are expected to be defined by the U.S Department of Homeland Security’s Cybersecurity division.
President Joe Biden issued an executive order concerning this issue — an overarching plan outlining how data should be handled to protect American interests. The executive order can be found here.
This move is seen as a continuation of the US’s crackdown on the uncontrolled movement of data that could potentially harm national security. With data playing an increasingly integral role in the world of today, the establishment of new licensing programs such as these are considered a necessity to maintain control and protect sensitive information.
Full details of the proposed licensing program are yet to be released, but the global legal community will be watching with keen interest, given the implications it may have on international data regulations and privacy laws.
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