As far as I know Sony doesn't let changing countries/region. So you need to create a new account.
For your wallet money try contacting PSN support or check reddit for more info, there should be an option to transfer your money to your new account, but I'm not sure.
If you used public VPN, then for sure its IP is blacklisted/known by Sony, you can try using a paid VPN with a dedicated IP option., dedicated IPs are less likely to be blacklisted.