In recent years, cloud computing has become one of the most emerging industries in advanced countries. In the development of the cloud computing industry, most governments adopt guidance and promote related standards to lead the use of the technology to enhance the efficiency and security within both of the public and private sectors. However, the application of the cloud computing has also brought several legal challenges, especially in the compliance of privacy and personal data protection. The article tries to highlight and examine these vital policy and regulation issues and proposes some suggestions and recommendations in the hope to provide a friendly legal environment for the development of cloud computing industry.