When you use a VPN, a virtual private network that masks your real IP address and location. Also known as proxy service, it's one of the most common tools crypto users rely on to bypass regional blocks, avoid surveillance, or access decentralized exchanges in places like Iran, Russia, or India. But here’s the problem: many crypto platforms now have a high VPN detection rate. They don’t just block you—they know you’re using one, and they log it. This isn’t just about convenience. It’s about privacy, access, and safety.
How do they do it? It’s not magic. Platforms check your IP against known VPN provider, companies that lease IP addresses to users, often flagged by databases like IP2Location or MaxMind. They look at connection patterns—do 500 users suddenly connect from the same IP? Are you using a data center IP instead of a residential one? Are your DNS requests leaking outside the tunnel? Even small mistakes like using the wrong protocol (OpenVPN vs. WireGuard) or having WebRTC enabled can give you away. Some exchanges, like B2Z and Interdax, actively block traffic from known VPN detection, the process of identifying and filtering traffic originating from anonymizing services. They don’t care if you’re just trying to trade Bitcoin safely—they just want to avoid regulatory risk.
And it’s not just about getting blocked. Your IP address tracking, the practice of linking a digital identity to a physical location via internet connection data. can tie your wallet to your real-world identity—even if you never gave your name. If you used a VPN to access a DEX in Iran, then later traded on a KYC exchange with your real ID, your entire history can be stitched together. That’s why tools like non-custodial wallet, a crypto wallet where you control your private keys without relying on a third party. alone aren’t enough. You need to control your connection, your IP, and your behavior. Many users in restricted countries now combine Tor, custom DNS, and residential proxies—not just any free VPN—to stay under the radar.
The posts below show real cases where users got locked out, lost access to airdrops, or got flagged because their VPN was detected. You’ll see how Iran’s crypto users work around banking bans, why Russian traders switched from Binance to P2P, and how a simple DNS leak ruined someone’s privacy after months of careful planning. Some of these stories are about failed attempts. Others are about smart workarounds. Either way, they’re not theory—they’re what’s happening right now. If you’re using crypto outside the mainstream, you need to understand how detection works. Not to avoid it completely—that’s impossible—but to stay one step ahead.
Most crypto exchanges detect VPN usage 70-80% of the time. Learn why, which VPNs actually work, and how to protect your account without getting banned.