In a hybrid cloud environment, you maintain control over compliance and data sovereignty through clear data localization, policy driven access and transparent data flows. Start by classifying data and determining where it is legally allowed to be stored, for example in a specific country or data center. Use data governance and encryption tools to protect sensitive information both on premises and in the cloud. With central identity and access management (IAM), you ensure only authorized users have access based on policies aligned with regulations such as GDPR, NIS2 or ISO 27001. Also choose cloud providers that offer explicit guarantees on data residency, compliance certifications and contractual protection for your data. By setting up audits and continuous monitoring, you can demonstrate compliance with laws and regulations.