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Why UK businesses are replacing VPNs with proxies amid rising regulatory scrutiny

5 August 2025
in Business
Reading Time: 3 mins read
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Why UK businesses are replacing VPNs with proxies amid rising regulatory scrutiny
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A growing number of UK businesses are turning away from traditional Virtual Private Networks (VPNs) and embracing proxy services as their preferred tool for digital operations, amid tightening regulatory scrutiny and increased awareness of performance and compliance risks.

According to new data from Decodo, a leading provider of proxy infrastructure, the UK has seen a 65% rise in proxy users and an 88% increase in proxy-generated traffic over the past year. The trend is being driven by companies seeking more control, flexibility, and regulatory peace of mind when managing sensitive online operations.

“Companies around the globe are getting smarter about how they operate in highly competitive landscapes,” said Vytautas Savickas, CEO at Decodo.

“Instead of just picking the most popular tools, they’re choosing what actually works best for them — tools that offer faster performance, better region-specific access, and fewer compliance hurdles.”

While VPNs encrypt all traffic through a single tunnel to mask IP addresses and secure activity, they often trigger security flags, struggle with geo-restricted content, and face mounting regulatory pressure, particularly in markets like the UK.

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