The report states, “In that case, the most viable way to avoid violating the laws of a given jurisdiction is simply to avoid that jurisdiction entirely.”
Best Practices in Geofencing
Given the complex U.S. regulatory landscape, it is vital for crypto companies to conduct a thorough regulatory risk assessment. The report outlines three best practices for establishing an effective geofence in the U.S.:
- Block all U.S. users
- Use non-U.S. infrastructure
- Set up offshore entities
The process recommends that companies prevent users in the United States from accessing services that are subject to the country’s regulations.
Operating outside U.S. jurisdiction provides additional layers of protection. If a company establishes entities outside the U.S., they can offer products and services to non-U.S. customers.
The report provides detailed guidance on how companies can implement these practices.
Effective Geofence Blocking
An effective geofence requires blocking U.S. persons from accessing regulated activities.
