I don't follow the logic of this rebuttal. The parent comment's argument implies that VPNs are disproportionately likely to harbor fraud, which isn't true of (say) phones in general.
Some customer bases are just shady. If you don't mitigate fraud, it's not fair to push it uphill to your service providers. They will stop providing service when you're more trouble than the money you generate. Business 101, this is not a tech issue.
Look at a merchant account agreement sometime, there are all sorts of businesses deemed too risky for conventional payment processors. It's not unique to PayPal and you would be almost instantly in bankruptcy if you didn't set restrictions on the types of businesses you process for.
Restricted activities include some obvious sketchy areas (check cashing) and some less obvious sketchy areas (human hair, fake hair or hair-extensions).
Why? Any company is free to set their limits on who they want to work with.
When it comes to financial situations, it's all about risk. It's completely within their right to mitigate that risk based on the profiles of the industries they deal with and this is what keeps them in business.
