Transparency First: How IPRoyal Approaches Proxy Sourcing and Use

The proxy industry went through a shakeup in 2026: several providers faced enforcement actions, including domain seizures. For clients, events like this raise a fair question: where do a provider’s IPs come from, and who else is using them?

At IPRoyal, our goal is to keep our supply chain safe, transparent, and reliable. Here is how we put that into practice, on both sides of our network.

Compliance First: KYC & Testing

Maximizing IP numbers in a pool, whether residential or datacenter, is relatively easy. The hard part is maintaining quality and verifying sourcing.

End users, our clients, need high-quality IP addresses to access the data they need. They also need a reliable and stable network to maintain operational continuity and reasonable prices that don’t erode their margins.

All that would be part of regular business, but a proxy service provider is also reliant on its suppliers. Proxies can be procured in a multitude of ways, some of which may not fit our standards.

So, every potential IP pool partner goes through a multi-step review before joining our network:

1. Identity verification. Each new partner completes ID verification through an independent third-party provider.

2. Business model review. We request a description of the partner’s business model, IP acquisition, and pool composition - all of which are then reviewed to assess legitimacy.

3. Evidence of consent. Suppliers must show that device owners gave informed consent before their IPs were used.

4. Hands-on quality checks. Where applicable, our team verifies partner claims directly, including application testing and document reviews.

5. Daily IP scanning. IPs in our pool are checked daily against public abuse databases. If an IP is flagged, we take necessary actions according to our policy.

New partners complete this review before joining. Business practices, executives, and strategies change over time, so monitoring continues for as long as a partner is in our network.

What We Don’t Accept

We are formalizing our sourcing standards in written agreements with all supply partners. Some partners and sourcing models don’t meet those standards, and we don’t work with them.

• Incomplete KYC and KYB. No new partner can join our network without completed KYC and KYB verification.
• Unauthorized ISP subnets. New ISP partners must sign agreements confirming they are authorized to provide their subnets.
• Insufficient evidence of consent. We don’t accept IPs without sufficient evidence that they were collected with informed consent. This includes:
  • Resold IPs from other proxy providers. We can’t evaluate those IPs or how they were acquired.
  • Unverifiable “private networks.” A claim of running a local network or private community isn’t enough without evidence.
  • Software installations without a legitimate business case. We don’t accept IPs gathered through software installations without a legitimate business case or proof of user consent.

These standards keep our network smaller than it could be. We consider that the right trade-off.

Ongoing Monitoring

Supplier vetting is one layer of protection. Detection is another. Our cybersecurity team checks the IP pool daily against public abuse databases to identify and block suspicious IPs at the gateway level.

Who Uses Our Network

Supply is only half of the picture. The other half is who uses the IPs in our network. When proxies are resold, the original provider loses visibility into the end client and their use case. That makes abuse prevention much harder.

That’s why IPRoyal does not accept reseller clients. Our Acceptable Use Policy applies to every client, and our Terms of Service prohibit reselling.

Moving Forward

Compliance is an ongoing process. We continue to review our risk management practices and strengthen our frameworks, so that compliance, safety, reliability, and security remain at the center of IPRoyal’s service.