In discussions with a prospective customer who wants to move to Google Cloud to make...

Retain on-premise itself those portions of data and compute which are under regulation. Take advantage of all the other cloud capabilities for remaining work-loads.

It is too risky to touch anything in such a scenario. It is best to remain entirely on-premise.

Regulations are guidelines. As long as the data remains encrypted, you can move it anywhere.

Petition the government for changes to such regulations as all industries are mov-ing to the public cloud. Then, when the regulations are eased, move to Google Cloud.