And this isn't discriminating on nationality or national origin, it is on the nation you currently live in. Employers decide not to hire employees living in other countries all the time, it's the most prevalent choice (i.e. US companies only hiring employees living in the US). I don't see why doing this because a customer you've considered critical has asked for it is any more legally risky that having done it for other reasons, assuming we discount the anti-boycott argument.
This is all with the huge caveat of I'm not a lawyer, just giving my perspective based on how I've seen these laws/regulations applied in the past.