We have a seen a case where somebody issued what appeared to be collector coins of the British Virgin Islands. In fact, they were not authorised by the BVI, so they are now being regarded as fantasies. These fantasies were intended to mislead, but in fact most fantasies do not intend to mislead. However, they may eventually mislead collectors, who may not be sure of the provenance of the fantasies and then mistake them for genuine numismatic issues.
Many fantasies are struck and sold purely for commercial reasons, because some people like collecting them. There are "sets" for the Galapagos Islands and various other exotic locations, which in fact are under the jurisdiction of legitimate existing states and whose circulation coinage looks very different from the fantasies. It is of course a crime all over the world to counterfeit money, but if the fantasy set issued with the name "Galapagos" or "Greenland" looks nothing like the coins that circulate in those places, then it cannot be said that the fantasy issuers are attempting to counterfeit coinage. The fantasy purveyors, therefore, manage to stay within the law, and in any case they are presumably not trying to break it. However, it must surely irritate the legitimate authorities that such fantasies exist, but it is presumably a grey area within the law. I do wonder if this will begin to change, particularly in the light of the recent "BVI" issues.
Years ago, a reader wrote to Coin News (UK) about a piece he had purchased that showed a portrait of Mussolini. He wondered if this could have been a trial or a pattern from the rump Fascist regime of 1943 to 1945 - the so called "Italian Social Republic". In fact, the piece was a fantasy, made to satisfy neo-fascists of the 1970s. So, you can see how deceptive some fantasies can prove to be. However, it would be one thing for a state to legislate against anybody producing fantasies in their name and bearing current dates. It would be quite another thing for them to attempt to ban pieces that use dates from the distant past. Or would it? What do the members think?