Unfortunately, you can't block proxy traffic. There are bunch of public proxy sites, you can block their IP subnet via iptables or .htaccess, but you can't block those socks5's that are being sold and released for free on bunch of sites, they're accessible to everyone.
Everything depends on your situation, if you're facing with spammers you can make some usergroup restrictions, promotions, and such. If you have problems with banned users, you can put the meta redirection tag for a certain usergroup in the headinclude template, which would redirect all banned users on some site after they're being banned. That means, they wouldn't be able to log out unless they clear their cookies, or use another browser.
There are hundreds of options really.
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