Is data encryption mandatory after creating a Common Data Service environment?

Data encryption in the context of the Common Data Service (now known as Microsoft Dataverse) is considered optional after creating an environment. While encryption is an important aspect of data security and is implemented by default for data at rest and during transmission, the specific requirement to enable or configure additional encryption measures beyond these defaults is not mandated.

This allows organizations the flexibility to assess their specific security needs and comply with their own policies or legal requirements regarding data protection methodologies. Depending on the use case, organizations might choose to implement further encryption if they believe it necessary for their operations or regulatory compliance.

The other options might suggest requirements or considerations that are not universally applicable in every scenario, reinforcing the notion that while encryption is a best practice, it is not strictly enforced as mandatory across all environments.