It's a careful way of running a business with potential users in highly-regulated markets. They don't know their regulations or laws. They don't want to invest labor in complying with them.

So, they reduced their liability by prohibiting usage of the model to show those jurisdictions' decision makers they were complying. I considered doing the same thing for EU. Although, I also considered one mught partner with an EU company if they are willing to make models legal in their jurisdiction. Just as a gift to Europeans mainly but maybe also a profit-sharing agreement.