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@darnell @eff These are general considerations outside of my expertise and someone with experience in the liability and tax implications of online communities should weigh in. Laws differ from country to country and (in the US) state to state.
But to evaluate what risk you’re comfortable with - I think it’s fair to extend the analogy of a Mastodon instance to an email server. If you ran an email server and offered accounts to people, what would you do to stay out of trouble?