To ask the obvious question: does this affect IFDB, IFComp, IFWiki, or this forum? Maybe! We need to talk to the lawyer some more! We are figuring this mess out as fast as we can.
Another note: you’ve probably seen that Itch.IO has placed a similar restriction on UK users. Remember that this is a completely separate problem from the “payment processors” discussed in this thread. IFTF uses Paypal, but we do not sell games so we are not subject to Paypal’s limitations on what merchants can sell. IFTF does offer its web services to UK users, so we are subject to UK regulations.
(Itch is subject to both, so it has implemented two separate limitation policies.)