that's not true...some still have there own laws about it I think most of the poorer, third-world countries don't really mind it (at least that's where most of it comes from it seems)...
Also look for some netherland/dutch webhost speed will also be great and server has a very low downtime.. i know few of em that could possibly help you..
FYI, even if the site is located in another country you still can get legal action taken against you. That’s how it is in the USA at least.
Dunno if you guys noticed what happened with piratebay which was previously hosted in sweden and with all that fiasco happening off lately, he decided to host his site at a dutch datacenter and I don't see any problem with him as of now :d Although it is not warez.. it is torrent that i am talking about... But as for your question one can easily choose countries like, china, hongkong, Netherlands.
When one talk about Warez sites, you have to look at two points. 1. Warez Discussions & Reference Most warez sites are in the form of discussions forums. Legally, in many parts of the world, these sites can not be prosecuted for their discussions and pointing to download links they identify on the Internet. The identified individuals uploading and distributing files can be prosecuted. Even in the US, some hosting providers won't close such sites, unless they get great pressure to do so. Many service providers prohibit Warez in total, whether it is links, discussions, reference or whatever can be placed on a site regarding Warez. However, in countries like South Africa are some local laws which will classify these sites as conspiring to commit offences. Here these sites owners' can be prosecuted. 2. File hosting and distribution Websites hosting the warez descriptions and physical files are committing offences in many parts of the world. These sites are mostly hosted in countries not recognizing warez. I agree, even these countries might have other local laws preventing this however.