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 âgeo-locationâ from accessing a product by creating a virtual âfenceâ around it. 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 â abandoning the U.S. market entirely â but sometimes there is no alternative, pointing to geo-fencing as an extreme and expensive measure to ensure compliance with U.S. law.
