As the demand for data-driven decisions explodes, the proxy market is growing at double-digit rates. Brands, security teams, and researchers all lean on large pools of residential and mobile IPs to see the real web. At the same time, high-profile breaches and enforcement actions are forcing companies to rethink how they use proxies and GDPR together, and to move away from shady IP sources toward transparent, compliant, truly ethical proxies.
By 2026, this tension between growth and regulation will decide who survives in the proxy industry. The key question is now: what is KYC for proxy providers in 2026? Buyers are already looking for KYC GDPR compliant proxies and for every serious ISO 27001 proxy provider before they dare to buy residential and mobile proxies on scale, hoping to stay ahead of both competitors and regulators. According to recent forecasts, the global proxy server service market is set to grow from around USD 2.51 billion in 2024 to more than USD 5 billion by 2033.
The proxy server service market is expected to more than double between 2024 and 2033, even as GDPR / CCPA enforcement keeps tightening around how those IPs can be used.
From raw IPs to regulated assets: Proxies and GDPR / CCPA basics
Under GDPR and CCPA, IP addresses, cookies and device fingerprints are treated as personal data rather than harmless technical metadata. For proxy vendors and their customers, proxies and GDPR are now inseparable: every request routed through a proxy, from log retention to profiling and geo-targeting, must be designed with data-protection rules in mind.
CCPA adds a US layer: California users can see what was collected about them, request deletion and opt out of “selling” their data, including information gathered via proxy-based tracking and scraping. Providers must distinguish California traffic, honour these rights and prove who is behind each stream of requests, which is why KYC GDPR compliant proxies are quickly becoming the default for sensitive use cases.
What has changed for proxy providers after GDPR / CCPA:
- Logs and IP addresses are no longer “purely technical”; they are treated as personal data that must be minimised and protected.
- Transparent Terms of Service and a detailed Privacy Policy are mandatory, not optional extras.
- Data subject access and deletion requests can now include information obtained via proxies.
- Vendor contracts and sub-processors must explicitly cover proxies and GDPR obligations and incident handling.
Ignoring proxies and GDPR / CCPA in 2026 means accepting higher chances of fines, lost partnerships and reputational damage. The market is therefore shifting toward providers that can prove ethical sourcing of IPs, enforceable KYC processes and audited security controls like ISO 27001 turning proxies from raw infrastructure into fully regulated assets.
KYC proxy provider and ethical proxies
Today, the core question for any serious buyer is what is KYC for proxy providers in practice? It means treating every new client like a regulated partner: verifying company details, checking documents, validating payment methods and screening use cases. Instead of letting anyone spin up traffic for any purpose, every serious KYC proxy provider builds policies to filter out fraud, credential stuffing, and carding.
This is where KYC GDPR compliant proxies become the new baseline. Logs are collected and stored according to GDPR principles: minimisation, limited retention and strict access control. In practice, KYC- and GDPR-compliant proxies let both the client and the KYC proxy provider demonstrate that they know who is behind the traffic, why it is being sent and how related data will be handled throughout its lifecycle.
Ethical proxies: Meaning in 2026
Residential and mobile IPs are sourced with explicit opt-in and fair compensation, not bundled from shady apps or malware. The provider enforces a list of forbidden scenarios, actively monitors traffic patterns and is transparent about partners across the whole supply chain. In other words, ethical proxies combine KYC, consented IP sourcing and continuous monitoring.
How to spot an ethical ISO 27001 proxy provider:
- The website openly states that the company is an ISO 27001 proxy provider, with a certificate number or link to an audit summary you can verify.
- There is a detailed description of the KYC flow: which data is collected, how it is stored, how long it is retained and under which conditions it is deleted.
- Privacy and security sections explicitly cover proxies and GDPR: who is the data controller, how logs are handled and how data subject requests are processed.
- The provider mentions regular external audits, penetration tests or bug bounty programmes, reinforcing the picture of an ISO 27001 proxy provider with an actively maintained ISMS.
- Support can explain how they apply KYC checks in practice; if a supposed KYC proxy provider is vague about red flags or escalation paths, that’s a warning sign.
Taken together, these elements show how the market is shifting away from cheap, opaque IP pools toward KYC GDPR compliant proxies operated by verifiable, ISO 27001 proxy provider-level players.
How to buy residential and mobile proxies in 2026 without breaking GDPR?
In 2026, it’s no longer enough to simply buy residential and mobile proxies from the cheapest vendor and hope for the best. Each purchase decision now needs to factor in the provider’s jurisdiction, its logging and retention policy, the presence of KYC checks, whether it operates as an ISO 27001-level player. In other words, when compliance is on the line, due diligence matters just as much as IP pool size or pricing.
Quick checklist before you commit:
- Confirm that it is a real ISO 27001 proxy provider with a certificate number or public reference to an accredited audit.
- Read the Privacy Policy and DPA sections that cover proxies and GDPR and, ideally, CCPA, to see how they treat IPs, logs and data subject rights.
- Make sure your intended use case sits on the “allowed” side of their AUP, and that they explicitly talk about running ethical proxies, not turning a blind eye to abuse.
- Look at which data is collected and stored as part of KYC GDPR compliant proxies: is it minimised, encrypted and time-bound, or hoarded indefinitely?
- Understand how the provider sources its residential and mobile IPs (opt-in, compensation, consent flows) before you buy residential and mobile proxies at scale.
Citations
[1] “Proxy infrastructure transparency checklist”, Astro (2025)
[2] “GDPR data subject rights: An in-depth guide with examples”, Celestine Bahr, Usercentrics (2025)
[3] “What Is the California Consumer Privacy Act (CCPA)?”, Palo Alto Networks (n.d.)
[4] “Data protection explained”, European Commission (n.d.)
[5] “Data protection and privacy laws now in effect in 144 countries”, Aly Apacible-Bernardo & Kayla Bushey, IAPP (2025)
[6] “Data protection in development: Where are we headed?”, Nay Constantine, World Bank (2025)
[7] “Countries with Data Privacy Laws – By Year 1973–2016 (Tables)”, Graham Greenleaf, Macquarie University / Privacy Laws & Business International Report (2017)
[8] “Proxy Server Service Market Size & Forecast [2033]”, Market Growth Reports (2025)
Top comments (0)