IDEX is no longer a fully-decentralized exchange.
IDEX was not decentralized in the first place, I think that we should set a standard by which we define DEXs because claiming about decentralized does not make it decentralized.
IDEX is trying to be decentralized so that he is not required to manage databases and provide liquidity, then creates accounts and ask for KYC. It is a bad model for hybrid exchange that combine the defects of centralized and decentralized exchanges.
Most likely, in such cases, they try to avoid any legal problems, by setting such conditions and the possibility of providing communication through VPN. I do not think that there will be any problems.
The point of a decentralized platform is who controls the private key.