Video region cropping re-encodes your video locally in the browser: drag a crop box over the preview, move it as a whole or resize it with eight handles, lock it to common ratios like 16:9, 9:16, 1:1, 4:3 or 3:4, and the export contains only the picture inside the box.
Pixels outside the crop box never enter the output file; the output resolution equals the pixel size of the selection. The picture is re-encoded to H.264 MP4 with the audio track kept intact.
The video is never uploaded; everything runs on your device, which makes it suitable for unpublished material.