Copying AMIs to another region helps you keep a backup of your EC2 instances in a different location. This is useful if something goes wrong in the original region, like a failure or disaster. You can quickly launch your servers in another region without setting up everything from scratch. It also helps when you want to expand your application to other regions for better performance & faster access for users in different areas.
Yes, you can copy encrypted AMIs to another region. When doing this, you need to use a KMS key that exists in the destination region because keys don't replicate across regions. You can either use the default KMS key or choose a custom one.