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From what I've found, DST is available everywhere. So it shouldn't be a problem for her to redeem it, but she can't D:
Worst case scenario it could be that there are no problems and she simply doesn't want to accept the gift. Sometimes people prefer to pull a white lie in order to avoid an awkward situation or quarrels.
Well I remembered that she said the item is restricted from her country, but she set it to Malaysia so it doesn't make sense? I would like to think that IP address is playing a part but I can't ask her to set up VPN for her to redeem it, as that would go against the Terms and Conditions in Steam D:
But wouldn't you get banned permanently if found out though?
You can't choose your own region for Steam unfortunately, you may choose download location to configure your bandwidth and you may choose region to display on your profile but none of those impacts region affiliation with Steam store.
Your guess weren't wrong, Steam reads IP addresses for region.
Steam does prohibit bypassing purchases, gifts and regional restrictions with VPN and would result in account suspension.
- There is a workaround however, if the game you wishes to gift her such as Don't Starve Together doesn't come through then you could gift her a wallet gift card for her to purchase the game herself. The only drawback would be that you won't be the one getting the Steam points if she makes the purchase, if that matters.
You CANNOT choose region. For several months now the rules have been updated to stop region hopping. So you have YOUR region, which is where you live and where your registered form of payment comes from.
You can only change that if you move AND have a new form of payment that is registered in the new place.
So that's your problem - it's restricted in her country so no matter what you think you can do, it can't go through.