The requirement to block some class of people off from some customers is nothing new, and back at Sun there was separate Sun Federal which was dedicated for such clean business.

GitLab's approach (and i think it is just a start of the trend in the industry, time to get rid of the accent :) while theatrically good isn't practically efficient. A Chinese or Russian residing here with some family back at the Motherland is susceptible to the same pressure in the loving, yet firm hands of the Motherland as if s/he were residing there her-/himself. So the next absolutely logical and necessary step for GitLab on this path is to block all Russians and Chinese who has at least some family back there. Giving that there may be other ties too and the hassle to verify (to which degree of relationship?), simply blocking all those nationals would the natural and practically efficient way.