SFS and the Captcha block against automated attacks (bots) and users who've been flagged as spammers (in the case of SFS); a human, however, has the intelligence to be able to find a proxy or the ability to clearly read a captcha and process a registration.
v7.6.0 will attempt to read the data sent with a proxy, including the "forwarded for" variable, which would read out the IP address of an open proxy request; thus showing their actual IP. And at a future point I'll be looking at additional services and captcha options.
I would love to get this "just working" for you, but there is no clear "heres the check" notation for opening it for you since this bit:
Ok, this is completely untested, in /admin/doapproveusers.php find:
And change it to:
Nothing else in the processing bits (/admin/doapproveusers.php) or the display bits (admin/membermanage.php) display a visible check that one could just remove.