Abstract: A technique implements data policy deployed in a tag-based policy architecture of a virtualized computing environment. Implementation of the data policy may include applying volume tags to data stored on virtualized storage resources, such as disks organized as volumes, based on instances that generate the data, contents of the data, and/or sensitivity of the data. The volume tags may be applied in a cryptographically strong manner to prevent tampering of the tagged data. To that end, the volume tags are cryptographically associated with the data, wherein such association is effected by binding the tags to a data encryption key stored on the volumes (disks) and used to encrypt/decrypt the data stored on the volumes.