According to Odaily Planet Daily, Variant Fund's chief legal officer said yesterday that as US regulators continue to crack down on the cryptocurrency field, many cryptocurrency founders are considering geo-fencing as a compliance strategy.
Geofencing means blocking people in a specific “geo-location” from accessing a product by creating a virtual “fence” around the product. It can be used as a fallback option for compliance strategies if a company cannot comply with regulations, such as providing disclosures and KYC.
Chervinsky added that this is a fairly extreme solution to the problem of regulatory uncertainty — abandoning the U.S. market entirely — but sometimes there is no alternative, noting that geofencing is an extreme and expensive measure to ensure compliance with U.S. law.
