First of all, you are talking about 3 completely different things. Actually you have only mentioned two, but a 3rd is implied.
UIRequiredDeviceCapabilities does pretty much what the name says. It identifies the capabilities required for your app to run. It says absolutely nothing about geo-blocking or geo-fencing. It merely allows your app to be installed on devices that could, strictly in theory, support your requirements.
I don't know the reason for your geofencing request. Most of the technology to support geofencing is based on typical consumer device usage. You can tell Siri to remind you about something when you "get home" or "get to work". But to use it for anything that is based on a political boundary, of any kind, is, at a minimum, a legal mine field. If you are doing it to support something like sales taxes, then it may be suitable as part of a "best effort" to determine your sales tax compliance. However, I am not a lawyer. There are also 50 states, at least in the US. You didn't specify your country. You will need official advice from both your accountant and your attorney, both of whom should be legally qualified to make such an assessment.
If you are using that geo-fencing for something other than sales taxes, then probably won't need advice from your accountant. You will still need advice from an attorney, but it will have to be a much more expensive attorney than the one you talked to for the sales taxes.
And finally, you didn't mention the platform. I assume you are talking about Apple platforms because of where we are. Is this for iOS or macOS? Specifically, is the App Store or non-App Store? If it is non-App Store, then you can proceed based on the legal advice you have received at this point.
If this is for the App Store, then you also have to pass App Review. Apple's App Review guidelines suggest that geo-restrictions can only be used to comply with legal requirements. Apple only mentions this in the context of apps that support real-money gambling. Whether Apple will approve your app for this purpose, or any other purpose, is solely based on the decision from App Review. Furthermore, Apple can, and does, change its mind on such things on a regular basis. If your company is going to depend on this market for its existence, then you should probably also have venture capitol funding and maybe business insurance. Essentially, you are giving some anonymous person at Apple, after a few weeks of training (maybe?) the power to end your business before lunch time.
If you are implementing geo-fencing as a way to alert the user that they are within walking distance of a coffeeshop or some other beacon, as an example, then go for it. For any other reason, I strongly recommend some other type of app.