Country Blocking by Residence/Nationality

Why Implement Country Blocking?

DeFi platforms face challenges with regulatory compliance and user access across borders. Traditional IP-based geo-blocking is vulnerable to VPNs and proxies, so we combine IP checks with identity verification using government-issued IDs to ensure greater accuracy and security.

Benefits of Country Blocking

• Enhanced Accuracy: Verifying residence or nationality reduces errors that IP-based blocking causes.

• Improved Compliance: This approach helps DeFi platforms meet regulations and reduce legal risks.

• User Trust: Accurate access controls build trust with users and regulators.

Use Cases

Residence/nationality-based country blocking addresses several challenges in the DeFi space:

• Token Sales and ICOs: Ensure compliance with securities laws by restricting access to token sales based on user residence, preventing participation from restricted jurisdictions.

• Lending and Borrowing Protocols: Implement jurisdiction-specific risk assessments and lending terms based on users' verified residences.

• Decentralized Exchanges (DEXs): Control access to certain trading pairs or features based on regulatory requirements in different countries.

• Yield Farming and Staking: Manage participation in yield farming or staking programs according to local regulations and tax implications.

• Governance Participation: Ensure voting rights and proposal submissions comply with relevant securities and corporate governance laws based on participants' residences.

How Civic Can Help

Civic Pass, specifically the Civic ID Verification Pass, can effectively be used to implement residence/nationality-based country blocking in DeFi. This multi-tiered approach includes IP checks, VPN detection, and identity verification, making the Civic ID Verification Pass the best option due to its tools and features:

1. IP and VPN Checks: Civic Pass begins with verifying the user’s IP address and detecting VPN usage. These layers prevent users from masking their true location, ensuring a stronger baseline of protection for DeFi platforms.

2. Verification Process: Users go through a one-time verification process using the Civic ID Verification Pass. This pass verifies the user’s residence or nationality using government-issued ID documents to accurately determine where the user is from.

3. Tokenized Attestation: Once verified, a Civic ID Verification Pass is issued as a blockchain-based attestation of the user’s residence/nationality. This pass is more secure than other pass types because it involves actual checks of government-issued documents.

4. On-Chain Verification: DeFi protocols can integrate Civic ID Verification Pass checks into their smart contracts to verify user eligibility based on their attested residence/nationality. By combining IP and VPN detection with this attestation, platforms ensure a multi-layered approach to user verification.

5. Privacy-Preserving: The verification process uses advanced privacy-preserving techniques so only the necessary info (eligibility based on residence/nationality) is shared and not other personal details.

6. Updatable and Revocable: Civic ID Verification Passes can be updated or revoked if a user’s residence changes or if regulatory requirements change, so both users and platforms have flexibility.

Get In Touch

Country blocking based on residence or nationality can help your DeFi navigate the regulatory maze while keeping user privacy and decentralization. Civic Pass has the solution for you. Get in touch to learn more.

Legal Disclaimer

Civic's ID Verification Pass is designed to help with residence/nationality based country blocking, but please note:

1. Regulatory Compliance: Country blocking based on residence/nationality is the responsibility of the DeFi platform. Civic provides tools to help but does not guarantee full compliance with all laws and regulations.

2. Not Legal Advice: Information in this article and from Civic regarding country blocking is for informational purposes only and not legal advice. DeFi platforms should consult with legal counsel to ensure their implementation meets all relevant regulatory requirements.

3. Ongoing Compliance: Regulations around country restrictions and user verification in DeFi are changing. It’s the responsibility of the DeFi platform to stay up to date with and comply with all laws and regulations in all jurisdictions.

4. Limited Liability: Civic’s ID Verification Pass is a tool to help with verification. Civic is not responsible for how this tool is used by DeFi platforms or for any regulatory or legal issues that may arise from its use.

5. Accuracy of Information: ID Verification Pass aims to provide accurate information but Civic cannot guarantee all verifications are 100% accurate or up to date. DeFi platforms should implement additional measures as needed to stay compliant.

6. User Privacy: DeFi platforms using this solution must make sure that they comply with all applicable data protection and privacy laws when handling user information obtained through the verification process.

By using Civic's ID Verification Pass for country blocking purposes, DeFi platforms acknowledge these limitations and agree to use the tool responsibly and in compliance with all applicable laws and regulations.