D. The distributed nature of cloud storage may result in regulated information being sent across geographical boundaries One of the major regulatory compliance problems associated with cloud environments is that the distributed nature of cloud storage can potentially lead to regulated information, such as sensitive or confidential data, being stored and processed in locations that might cross geographical boundaries. This can raise concerns about data sovereignty, privacy regulations, and compliance with laws that restrict where certain types of data can be stored or processed. The other options do not accurately represent the significant compliance challenges often associated with cloud environments.