An example is when all hours spent need to be traced back to a requirement that has been signed off on by stakeholders. There needs to be a recordkeeping system to support this requirements traceability, so Jira it is.
Is that a regulation? It sounds like either an internal process choice or a contract requirement.
Edit: But point taken. I can see where this would be a (misguided, counterproductive) requirement in a probably-government contract. I would just suggest recognizing that it is a necessary evil when doing that kind of work, but not a good practice.