They did so unilaterally, without prior notice nor with any apology.
Below is an open letter I've been asked to pass on, and hope other services don't follow the lead VEOH has chosen to take.
To the Dark Forces of VEOH.
We have seen the lame excuses you have published to justify stabbing 82% of your customers in the back.
You did this without neither prior notice nor apology yet continued to accept our uploads so that your privileged 31 remaining countries are free to watch and download our contributions, whilst we are blocked to the extent that we cannot even be allowed to send you as much as an e-mail.
You have shown yourselves to be corporate cowards with absolutely NO respect for your clients, and suggest you replace the assinine genius(es) who came up with this idea and implemented it in such a callous fashion.
The passing of Stage6 was bad enough, but they did so in a civilised fashion, and in thier passing recommended YOU as a viable alternative.
If I get to a site where I can access VEOH, my first and last step will be to remove the videos I have downloaded, as some of your disgruntled, now defunct, community have done so already.
In the unlikely event of you apologising to us, as far as we are concerned VEOH is dead in the water and will remain so.
This has been compiled by users in 19 of the countries you have decided to ban + 8 users in Poland (not banned - yet) who have removed thier videos and have encouraged others to do so.