A practical guide to geofencing

Variant argues that geofencing, which blocks users in a given jurisdiction from a product, should be a last-resort compliance strategy for crypto companies. Geofencing can take a company outside the territorial scope of U.S. law and is often implemented by blocking a front-end interface or excluding wallet addresses from an airdrop. Variant says companies should first try to satisfy compliance obligations or restructure the product, since geofencing is viable only when neither works. It notes that the geographic reach of U.S. law remains uncertain, and that the Supreme Court's 2010 decision in Morrison v. National Australia Bank set a presumption against extraterritoriality for federal statutes.