s nations confront a growing array of global challenges—from national security threats and cyber attacks to illicit finance and tax evasion—cross–border information sharing has become an indispensable tool to facilitate policymaking and diplomacy. The cross–country exchange of data today is transforming diplomacy, security, and commerce. This transformation brings with it both remarkable benefits and complex risks.
The borderless nature of data and increasing decentralization of emerging technologies introduce new complexities. Countries must navigate the delicate balance between harmonizing global regulatory regimes—so as not to create a patchwork of conflicting laws—and respecting national sovereignty and privacy.
The burden of ethically and securely collecting, storing, and sharing sensitive personal information of individual citizens falls not just on governments but also on private companies. For example, data collection requirements imposed on traditional financial institutions may not neatly fit within increasingly decentralized financial systems. Businesses, especially those for whom data collection is not core to their mission, may struggle to comply with data collection regulations like stringent Know Your Customer requirements. Imposing such rules on decentralized systems—where no single entity has full visibility into personal or transactional data—highlights the challenge of adapting legacy regulatory frameworks to a rapidly evolving technological landscape.
Moreover, expanded data collection raises legitimate concerns about government surveillance and the exposure of proprietary business information. The privacy rights and interests of citizens and companies alike must be considered in new efforts to protect national security or ensure tax compliance, all while encouraging responsible innovation.
Ultimately, cross–border information reporting is a double–edged sword. While it promotes transparency, accountability, and global cooperation, it also raises serious questions about privacy, sovereignty, and the potential chilling effect on innovation. Policymakers must strike a careful balance of mitigating risks without imposing undue compliance burdens on companies or infringing on individual rights.
The path forward demands nuanced, modern solutions—ones that balance the global benefits of information sharing with the realities of an increasingly decentralized, digital world while safeguarding the fundamental values of privacy, innovation, and national autonomy.
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The diplomacy of emerging tech and cross–border data sharing
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September 25, 2025
Cross–border information sharing has become a critical tool in facilitating policymaking and diplomacy amid polycrisis challenges. Yet it carries with it complex ethical and security risks, writes Stacey Rolland.
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s nations confront a growing array of global challenges—from national security threats and cyber attacks to illicit finance and tax evasion—cross–border information sharing has become an indispensable tool to facilitate policymaking and diplomacy. The cross–country exchange of data today is transforming diplomacy, security, and commerce. This transformation brings with it both remarkable benefits and complex risks.
The borderless nature of data and increasing decentralization of emerging technologies introduce new complexities. Countries must navigate the delicate balance between harmonizing global regulatory regimes—so as not to create a patchwork of conflicting laws—and respecting national sovereignty and privacy.
The burden of ethically and securely collecting, storing, and sharing sensitive personal information of individual citizens falls not just on governments but also on private companies. For example, data collection requirements imposed on traditional financial institutions may not neatly fit within increasingly decentralized financial systems. Businesses, especially those for whom data collection is not core to their mission, may struggle to comply with data collection regulations like stringent Know Your Customer requirements. Imposing such rules on decentralized systems—where no single entity has full visibility into personal or transactional data—highlights the challenge of adapting legacy regulatory frameworks to a rapidly evolving technological landscape.
Moreover, expanded data collection raises legitimate concerns about government surveillance and the exposure of proprietary business information. The privacy rights and interests of citizens and companies alike must be considered in new efforts to protect national security or ensure tax compliance, all while encouraging responsible innovation.
Ultimately, cross–border information reporting is a double–edged sword. While it promotes transparency, accountability, and global cooperation, it also raises serious questions about privacy, sovereignty, and the potential chilling effect on innovation. Policymakers must strike a careful balance of mitigating risks without imposing undue compliance burdens on companies or infringing on individual rights.
The path forward demands nuanced, modern solutions—ones that balance the global benefits of information sharing with the realities of an increasingly decentralized, digital world while safeguarding the fundamental values of privacy, innovation, and national autonomy.
