Yes, it does. Qeys is not designed to deny user access to protected sections of an application, though.
The ideal use case is a web app (e.g. awesome dashboard) you built and is ran on premise on one of your clients' servers. Their dayjob isn't pirating software, so blocking qeys.io probably has not been on their to do list.
But yes, if qeys.io is blocked, no validation takes place.