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AppSync 4.3 patch 1 and higher includes support for SQL Transparent Data Encryption (TDE).
For a TDE encrypted database copy to be recoverable on a different SQL instance, a Master Key and its Certificate, along with the Private key must be exported from the source SQL instance and imported into the target instance you will be recovering to.
The following are requirements for AppSync support of TDE databases:
For more detailed information, see the Microsoft article: https://docs.microsoft.com/en-us/sql/relational-databases/security/encryption/move-a-tde-protected-database-to-another-sql-server?view=sql-server-ver15