Hello,
This is correct, in order to read the Tag it is required to be close to the tag to scan it. The NDEF read will contain the encoded message that needs to be decrypted by the back end server.
The difference is that Proximity Check is a protective feature implemented to avoid a relay attack. The NTAG 424 does not have this protective feature. It just allows anyone to read the NDEF but, if your reader application isn't built to send the encrypted data to the server you will just end-up with a gibberish NDEF message.
Is possible that the misunderstanding was because of the use Proximity Check, it is the actual name of the MIFARE's feature.

Best Regards,
Fabian