Just a note to people on this thread saying, basically, 'how will they ever know who is where?'... they know, and not from IP lookups.  KYC ("Know Your Client") laws require a verified, valid ID (front / back of drivers license or gov ID, or a passport photo), which then gets uploaded to a provider like Jumio or Onfido, who's job is to confirm the identity shown is linked up to the name provided.  So that confirms identity, pretty well.  Then the next step is for the user to provide a photo/scan of a document that proves residence.  A power bill, a lease agreement, etc.  There's dozens of document types that work for this and the same KYC provider will then review that document to confirm the user lives where they say they do.  This service isn't exactly cheap, usually each one of these checks costs $5-$10, regardless of the outcome.  If you already have the documents photographed and ready to upload, the whole process takes about 10 minutes.