Amid U.S. regulatory uncertainty, more crypto founders seek geofencing as a compliance strategy

Variant Fund's chief legal officer wrote on X yesterday that as US regulators continue to crack down on the cryptocurrency field, many cryptocurrency founders are considering geofencing as a compliance strategy. In short, geofencing means preventing people in a specific "geographic location" from accessing a product by creating a virtual "fence" around the product. If a company cannot comply with regulations, such as providing disclosures and KYC, it can be used as a fallback option for compliance strategies. However, Chervinsky added: "This is a fairly extreme solution to the problem of regulatory uncertainty - abandoning the US market completely - but sometimes there is no choice." He pointed out that geofencing "is an extreme and expensive measure to ensure compliance with US law."