Using VPNs for Crypto Exchanges

Many countries and territories have stringent crypto laws. In some countries, it’s difficult or costly to please local regulators.

Even exchanges with optional identity verification (KYC – know-your-customer) will typically block users from United States and select sanctioned countries.

Using a VPN is the main way to bypass these blocks.

What’s a VPN?

VPN stands for Virtual Private Network. Simplified, it’s a software on your PC or mobile device which will change your local IP address to another country.

By using a VPN service for crypto exchanges, you may be able to access a full range of their features and services without restrictions.

How do exchanges detect my location?

When your device (PC, phone, router) connects to the internet, it will receive an IP address. These addresses can be traced back to a specific country very easily.

In most cases, exchanges will use basic IP blocking to detect user location. By connecting to a VPN, you are first connecting to a server in another country, which will then send all your internet requests on your behalf.

Essentially, the VPN serves as a buffer between your device and any end point (such as exchange website). Because of this, exchange’s IP blocking will see the IP of the VPN server, and not your local IP.

There are other ways crypto exchanges can detect your location, or at least see something isn’t quite right. This can be through cookies, or even checking if your browser language or computer clock match your location and time zone.

However, nearly all exchanges (aside from a few biggest ones) will only use the most basic IP blocking method to detect location.

Why are exchanges blocking users from specific countries?

Every exchange blocks users from certain countries or territories. Because of difficult local laws, many exchanges find it easier and more cost-efficient to avoid accepting customers from USA and few other countries, than to comply with local laws and regulations.

For most crypto exchanges, it’s also best not to anger government agencies from countries with far-reaching worldwide influence, such as the US. This is especially problematic in case exchanges (try to) accept customers from sanctioned countries such as Iran or North Korea.

Furthermore, lack of global crypto regulatory framework means exchanges have to adapt to every country’s laws individually. Despite best efforts to operate fully compliant, in some countries it’s simply too difficult, time-consuming and costly to please local regulators or agencies.

Is using VPNs illegal?

There are a few countries where VPN use is illegal, such as North Korea, Iran, Turkmenistan, Russia, and Belarus, to name a few. China doesn’t technically ban VPNs, but citizens are required to use those licensed by the government, which aren’t likely to provide the same privacy protection as commercial VPNs.

In any case, you should check your local laws to ensure using a VPN is legal in your country. In most countries, there is nothing illegal about using VPNs.

The best VPN for crypto trading

Because most exchanges only use basic IP detection, most VPN services will do just fine. You don’t need military-grade traffic encryption or no-log VPNs. For the purpose of crypto trading, it’s enough to just change your IP address to another country, which is a basic service any VPN will provide.

Some of the most popular VPNs are NordVPN, ExpressVPN, and ProtonVPN. But, you can also look for the cheapest one if your budget is tight.

	NordVPN	ExpressVPN	ProtonVPN
Cost per month (monthly plan)	$12.99	$12.95	$9.99
Cost per month (yearly plan)	$4.59	$6.67	$5.99
Buy with crypto:
Kill switch:
Country IPs:	111	105	91
No logs:

All these VPNs offer a 30-day money back guarantee, so you can test them thoroughly before any costs incurred.

This referral link for NordVPN gives you -68% discount and 3 free months.
Signing up through this link also helps support our website – see affiliate disclosure.

ProtonVPN offers a completely free version. Unfortunately, this free VPN only supports servers in 5 countries, but might be worth considering if you need to trade crypto with VPNs less frequently. For something as important as trading, it’s crucial to have a high quality connection with constant uptime. Relying on potentially unstable connections through free VPNs may not be a good idea.

Crucial VPN feature to look for: Kill switch

There is truly only one VPN feature you should specifically be looking at: kill switch. In some VPNs this is called seamless tunnel, seamless connection, network lock, or similar.

A VPN kill switch basically ensures that your internet access is completely shut down in case you lose the connection to the VPN service. It’s not uncommon to lose a connection to your VPN, even for a split-second. During this window, crypto exchanges may normally be able to detect a change in your IP address. By using the kill-switch option, you ensure that no data will be sent to an exchange through your browser or mobile app until the VPN connection is restored.

NordVPN, ExpressVPN, and ProtonVPN all have this kill switch feature. In NordVPN, you can even configure this to work for specific applications only, such as your web browser.

Important precaution: Use a second browser

All exchanges will set cookies in your web browser. These cookies are frequently used to store data or settings in your browser. For example, cookies can be used to remember your chart layout or dark mode preferences.

However, if you log in with multiple accounts on the same exchange, cookies can also be used to keep track of all these logins and accounts. You can of course block cookies or manually delete them after every logout, but this can have other inconveniences (such as resetting your chart preferences).

If you use a VPN to trade crypto, we found it best to simply do it in another dedicated browser. Your cookies won’t be shared between Firefox, Chrome, Opera, Brave, or other browsers. Pick one browser which you will specifically use for crypto trading with VPN.

We like Opera GX for this, because of its handy resource limiter. This is a gaming-oriented official version of Opera, which allows you to limit the amount of RAM or CPU resources this browser is allowed to use. Helpful when you open a bunch of trading windows and hog your PC resources. OperaGX also has a built-in VPN, but free public VPNs are not recommended for crypto trading.

Using a secondary browser – along with a VPN with kill switch set up for it – allows for seamless trading, without disrupting regular browsing or other activities.

Are VPNs needed on No-KYC exchanges?

No-KYC exchanges do not enforce mandatory identity verification. They are often located in jurisdictions with more relaxed anti-money laundering or financial privacy laws. However, this doesn’t mean they want to knowingly accept customers from United States and other countries.

An exchange may still restrict service for your country or location, even if you’re using one without KYC requirements. Using a VPN to spoof your location is the main way to bypass country detection.

Keep in mind, you should not use a VPN on exchanges that have mandatory KYC. That is, unless you have your identity verified in a non-restricted region. Instead, VPNs are mainly used on exchanges with no KYC requirements, or in case you want to avoid trading restrictions while traveling.

Taking it a step further with VPS

For most users, this step isn’t necessary. Advanced traders who may be dealing with larger amounts of money or don’t want to leave anything to chance can even consider using a VPS for crypto trading.

VPS or Virtual Private Server basically involves renting a server that’s physically located in another country. You can use any operating system on it, such as Windows. Then, you can use a remote connection to connect to and trade on the server.

If you are planning on taking your trading game to the next level, look into managed VPS or dedicated servers. Managed means your server will be auto-updated by the provider, and come pre-installed with operating system of your choice. All you really need is a browser, but letting someone else take care of software updates and installation can be worth the extra price.

Using crypto exchanges through VPS bypasses the need for any VPNs, as there is never any direct connection between you and the websites or services your server will connect to. Expectedly, this added safety does come at increased costs. A crypto trading VPS with decent hardware will probably set you back about $40 each month.

As said, using a VPS for crypto exchanges is a step above VPNs, and most users don’t need to consider it.

Which countries are safe for VPN trading?

We have an up to date list of allowed and restricted countries for every exchange listed on our website. Check each individual exchange review on Cexfinder, and pick any country from the list.

The following is by no means an exhaustive list, but here are some countries where none of the exchanges we reviewed are blocked:

• Austria
• Bulgaria
• Croatia
• Cyprus
• Denmark
• Estonia
• Greece
• Hungary
• Iceland
• Latvia
• Poland
• Romania
• Sweden
• Switzerland

Setting your VPN IP to any of these countries should be safe. You should never set your VPN address to USA. Even if you are not a resident of, or in United States, exchanges may restrict access to some or all trading, or in some cases block withdrawals until you can verify your identity and location.

Always keep your VPN up

There are a few exchanges that will use IP detection only during account creation, and otherwise won’t restrict trading. However, don’t count on this, as their policy may change at any time.

It’s always best to keep your crypto VPN active at all times, and use the kill-switch feature to ensure your IP is never exposed.

What happens if an exchange detects a restricted location?

Accessing exchanges from restricted countries or territories is against their terms of usage. Exchanges can restrict your trading ability, block certain features such as staking, or temporarily freeze your withdrawals. In some cases, CEXs can even restrict access to your account, at least until you can provide them with proof of residency.

Because mistakes are possible, it’s good to know there is a way to fully legally pass the KYC process. Here’s how.

Palau ID

If you’re wondering how to pass KYC regardless of where you’re from, you can apply online for a Palau residency. This will give you a valid physical ID from an actual country, and one that isn’t restricted on any cryptocurrency exchange.

You can order your Palau digital residency ID fully online. A physical version of the identity card will be shipped to you worldwide, and you can use it to pass identity verification on most online services, including crypto exchanges, payment providers, or online banks. This is a government-issued ID that can be used for any purpose that requires legal proof of identity.

Palau ID FAQs:

• Can anyone get a Palau ID?

  Unless for some reason it's prohibited by your local laws to apply for an identity document in another country, there should be no restrictions to getting a Palau digital residency card.

  To apply for it, you will need to provide a photo of your existing identity document.

  There are no real risks or downsides associated with getting a Palau ID. It does not require you to visit, or pay any additional costs or taxes in Palau.

• How much does Palau ID cost?

  Palau ID does come at a cost:

  • $248 for one year
  • $1,039 for 5 years
  • $2,039 for 10 year validity

  Compared to other alternatives such as establishing an off-shore company, Palau ID is significantly cheaper and far less inconvenient.

• Will all exchanges accept Palau ID for KYC?

  Bigger exchanges such as Coinbase or Binance are not likely to accept Palau ID's as a valid form of identity verification.

  Out of larger exchanges, we know Bybit accepts them regularly. Any mid-sized or smaller exchange will accept Palau documents, and allow you to fully KYC and trade without restrictions.

• How long does it take to receive Palau ID?

  Applying for Palau digital residency is as simple as doing any KYC process, and likely won't take over 30 minutes. After submitting your application, you will have to wait for an initial screening process, lasting 24-72 hours. Then, up to 7 days until Palau government approves your ID.

  Lastly, you need to wait for your physical ID to be shipped. You can expect your ID at your doorstep within a month. Do not attempt to pass KYC with any screenshot versions. Wait for your physical ID.

The biggest exchanges sometimes won’t accept users with Palau IDs, or will at least raise an eyebrow. But, most exchanges outside of the top five will accept Palau’s ID as a valid form of identification. Knowing this exists is reassuring, and gives you some peace of mind that you can almost always retrieve your funds from exchanges.

Nevertheless, your main portfolio and spot positions should always be in your decentralized self-custody wallets. This is why trading with leverage is so popular, because it allows you to trade with larger position sizes, but avoid keeping large amount of funds on exchanges.

How to convert fiat to crypto with VPN

An exchange may have a no-kyc policy, but this typically isn’t the case with the fiat payment providers they use. To convert your local currency into crypto, you first have to use a reputable payment gateway. These gateways will often require KYC, and can pass on your location information to the exchanges.

To bypass this, you should never attempt to buy crypto with fiat on an exchange where you are unable to pass identity and location checks. Instead, for your first fiat to crypto conversion you should use an exchange that’s fully available in your location, and where you can KYC without restrictions. Even in United States there are several exchanges which are suitable for this, such as BitMart, Coinbase, or Gemini. These are often referred to as “fiat gateway exchanges”.

Pass your identity verification on one of these exchanges. Then, use bank transaction, credit card, or debit card transaction to buy Bitcoin, Ethereum, USDT, or other cryptocurrency. As a last step, send the crypto from this KYCd exchange to another Non-KYC exchange.

Withdrawing crypto (even USDT or USDC) from one exchange to another wallet (including exchange wallet) is an on-chain transaction through the blockchain, which doesn’t have anything to do with your VPN or IP.

Tip: USDT typically has low withdrawal and network transaction (gas) fees. Alternatively, you can use Litecoin, XRP, or other crypto coins and tokens with low gas fees.

Step by step summary: Converting fiat to crypto with VPN + No KYC

1. Register on any exchange that services your country and has your preferred deposit method. For example, use our Bank Transfer Deposits or Bank Card Deposits tags along with country filter to find one you like.
2. Do your KYC on one of these fiat gateway exchanges. Remember, you want to use one that doesn’t restrict customers from your jurisdiction, so there’s no reason to avoid passing KYC.
3. Use whatever deposit method you prefer, and convert your USD, EUR or other local currency to USDT (or other cryptocurrency if you prefer).
4. Find a no-KYC crypto exchange. For this step, turn on your VPN, change IP to a non-restricted country, and use a private browser window, or preferably a different browser altogether.
5. Register for an account on your chosen no-KYC exchange (still with a VPN). Go to “Deposit”, type in USDT, select TRC-20 as network. Copy your deposit address from the non-kyc exchange.
6. Go back to your KYC’d exchange/fiat gateway (now, without the VPN active), Go to “Withdraw”, select USDT, paste in the deposit address from step #5. Make sure to use the right blockchain network (TRC-20 which is Tron blockchain has cheap fees).

Your USDT will typically arrive within 10 minutes. Same deposit/withdrawal process will work for any cryptocurrency, just be sure to always select matching blockchain networks.

Other tips:

• Don’t forget to turn on your VPN for all activities on the no-kyc exchange. As long as there’s a browser window or tab open with that exchange’s website, it can detect and transmit your location data. This is why we always advise using a secondary browser along with your VPN’s kill switch option for the browser application. This way, you never need to worry about forgetting to turn your VPN on or off.
• In step 6, you can also choose to withdraw money from your fiat gateway to a decentralized wallet, and then send from your wallet to the no-kyc exchange. Using your own wallet isn’t necessary for this process, as long as you do all the steps above correctly.
• If you are somehow unable to verify your identity on any exchange, your best alternative is to find a No-KYC exchange with P2P trading. These peer-to-peer marketplaces will directly connect you with other users, who will accept dozens of even hundreds of different payment methods, such as PayPal or even gift cards.

Final thoughts

Crypto trading can be difficult in certain territories, and restrictions can seem unfair. To bypass trading restrictions, many traders use VPNs with exchanges that don’t enforce mandatory identity checks.

We hope our guide helps understand the why and how. Remember, you should always aim to comply with any local laws, rules, and regulations.