Steam pre-empts that by tracking payment methods and using all known connection locations to try and prevent VPN hopping (If you are using a VPN to Argentina, you better have a card from an Argentine bank and hope your VPN never drops).

Places like the Eurozone simply are screwed because of the legal circumstances. If people are using payment methods other than cryptocurrency (which is not accepted on steam), it is relatively easy to find their location and charge appropriately.

As for the partial form of identity thing, it is hard to create a system that would not be subject to abuse. I believe that Valve’s current telemetry practices are not unreasonable given the lack of restraint for the user. The only expectation is that attempting financial shenanigans will have consequences, and shall be traced from that data. That’s fine.