The rule could probably be generalized to not building a business on a ccTLD, but there are instances where being unconnected to the country could directly be a problem. For example, .so (Somalia) domains have become popular as a generic ccTLD (because "so" is a generic English word, I guess?) used by companies like Notion, but technically it is against their terms to own one if you don't have a bona fine connection to Somalia.

(Policy: https://sonic.so/wp-content/uploads/2018/11/dotso-domain-nam...)

you would be protected by laws. as a foreigner you have basically no rights