VPNs And Geo-blocking in The Cryptocurrency World
Cryptocurrencies have shed light on a longstanding issue within the financial sector: the problem of control and independence. Centralized financial structures have proven to be unstable, often exerting excessive control over consumers.
Various governmental and private institutions are grappling with regulations to control cryptocurrency markets, despite the increasing integration of crypto into the mainstream. One method of control is through geographical restrictions, limiting access to certain regions.
For instance, BitMEX, a prominent cryptocurrency exchange and derivative trading platform, is inaccessible in the United States. Given BitMEX’s substantial daily trading volume, the denial of access to US crypto-traders represents a significant disadvantage.
As previously discussed, utilizing a VPN adds an extra layer of security and privacy to crypto transactions. However, VPNs such as NordVPN offer additional benefits for cryptocurrency users, including accessing previously unavailable markets for better exchange rates.
This guide focuses on overcoming geographical restrictions imposed on cryptocurrencies through the use of a VPN, facilitating broader access and enhanced trading opportunities.
What are geographical restrictions?
Geographical restrictions, also known as geo-blocking, employ technology to limit access to online content based on the user’s physical location. This practice is commonly observed in streaming services, where users from different countries may encounter varied content libraries. For example, Netflix users in Germany may have access to a smaller content library compared to those in the US. Additionally, certain services, such as cryptocurrency markets, may be entirely unavailable in specific regions.
Geo-blocking operates by monitoring users’ IP addresses and measuring end-to-end delay, which refers to the time taken for a data packet to travel from one point to another. By analyzing this information, the user’s geographical location can be determined. Subsequently, interested parties may implement IP address blocks or employ further measures, such as gathering device fingerprints, to track user activity online and restrict access accordingly.
How do VPNs bypass geographical restrictions?
VPNs are widely regarded as the top solution for circumventing geographical restrictions, offering an efficient means to overcome such limitations.
Firstly, VPNs obscure a user’s original IP address, which is tied to their actual geographical location, and replace it with an alternative one. This makes it significantly challenging to track individuals online via their IP address. VPNs achieve this by redirecting online data traffic through one of their servers rather than allowing it to pass through the Internet service provider, thereby enhancing online privacy.
Additionally, VPNs help resolve end-to-end delay issues by positioning the VPN server as the starting point for measuring delay. As a result, the delay time is reduced depending on the proximity of the VPN server to the target destination.
While VPNs contribute to obfuscating browser fingerprints, they are just one component of a broader privacy protection strategy. Other tools, such as timezone spoofers and browser user agent switchers, may also be employed for comprehensive privacy protection. However, these aspects delve into a separate discussion and warrant exploration at another time. For now, let’s delve into the topic of geo-blocks within the cryptocurrency markets.
Geo-blocks affecting the crypto industry.
As mentioned earlier, BitMEX’s restrictions in the USA serve as a prominent example of geographical blocking in the cryptocurrency sphere, but it’s not an isolated case.
Another significant instance is Coinbase, the largest cryptocurrency exchange platform in the United States. At the time of its public listing, Coinbase reported 43 million verified users and net revenue of 1.14 billion US dollars in 2020.However, notable markets such as Russia and China are absent from its list of supported countries. While we refrain from delving into the intricacies of international politics, this omission appears to reflect an effort to regulate and control crypto markets from the perspective of cryptocurrency enthusiasts.
This emphasis on centralization and regulation contradicts the ethos of cryptocurrency, which aims to promote decentralization and autonomy. VPNs play a pivotal role in addressing this challenge within the cybersecurity realm, by offering secure and more open access to the internet for consumers.
Another case in point is Kraken, a US-based cryptocurrency exchange platform and bank facilitating cryptocurrency-to-fiat-money trading. However, similar to Coinbase, Kraken is subject to geographical restrictions. Interestingly, apart from countries like Sudan and Somalia, it’s also inaccessible in Washington state and New York.
VPNs, such as NordVPN, offer a solution for accessing these platforms, with many users successfully bypassing geographical restrictions. Nonetheless, it’s advisable to exercise caution and verify user reviews and firsthand experiences to ensure compatibility with a VPN for accessing specific markets.
Starting June 15th, NordVPN will offer its 2-year plan for $3.30 per month (totaling $89.00), providing users with an impressive 72% discount. Additionally, users can take advantage of a time-limited offer: a 2-year plan with 72% off, along with an extra 3 months of NordVPN subscription time.
