Cryptocurrency Founders Consider Geofencing Amid US Regulatory Crackdown

According to Odaily, Variant Fund's Chief Legal Officer recently stated on X that as US regulatory bodies continue to intensify their scrutiny of the cryptocurrency sector, many crypto founders are contemplating geofencing as a compliance strategy. Geofencing involves creating virtual 'fences' around products to prevent access by individuals from specific geographic locations. This measure can serve as a fallback compliance strategy if companies are unable to meet regulatory requirements, such as providing disclosures and Know Your Customer (KYC) protocols. However, Chervinsky noted that this is a rather extreme solution to regulatory uncertainty—essentially abandoning the US market—but sometimes there is no other choice. He emphasized that geofencing is an extreme and costly measure to ensure compliance with US laws.