Over the Thanksgiving weekend, there were rumors that Microsoft would start banning fake Xbox Live accounts that use a geographic region different to the one where the system really is located.
TeamXbox found those rumors hard to believe as such course of action would automatically ban citizens that have traveled overseas (ex: U.S. soldiers) just for connecting from a different region.
It'll be more practical to simply block a download from Xbox Live Marketplace when the I.P. address of the user doesn't match the console's region. Well, that happens to be the case.
Commenting on the rumor, Chris Paladino, who is a member of the Microsoft's Games Global Marketing, posted the following comment at the NeoGAF forums:
"Details aren't all in yet - BUT, I do know for a fact that we are NOT banning the accounts. We are blocking downloads in cases where gold accounts are being used to gain US content in foreign marketplaces. I think (my opinion) that it is a legal issue - still waiting to hear back the official word."