As the Indian government prepares for the introduction of the cryptocurrency bill, it is reported that it is considering blocking the IP addresses of cryptocurrency exchanges. Despite ban reports, many people in the Indian crypto community believe that the government will not ban cryptocurrencies, including Bitcoin, entirely.
Blocking IP Addresses From Crypto Trading Platforms
The Indian government is reportedly considering “blocking the Internet Protocol (IP) addresses of companies / exchanges that trade cryptocurrencies,” the Business Standard publication reported on Monday, citing an unnamed “source of knowledge”. This measure, if implemented, will be part of the government’s efforts to ban cryptocurrencies.
Indian Finance Minister Nirmala Sitharaman recently said the cabinet note on cryptocurrency legislation is being finalized and will be presented to cabinet soon. A bill entitled “The cryptocurrency and the regulation of the official law on digital currencies 2021” will be listed for consideration in the current parliamentary session.
The Indian government has previously tried to block the IP addresses of adult websites and hundreds of Chinese applications. It found that users could still access the websites through virtual private networks (VPNs).
An industry expert was quoted by the local media as saying:
Different routes – such as VPNs, peer-to-peer trading, using cash to buy / sell cryptocurrencies, and using wallets outside of India to store and transfer cryptos, with some of the money used for investing under the Liberalized transfer limits of 250,000 USD may be sent abroad can be rerouted for the purchase of cryptocurrencies – gaps remain.
Earlier this month, the Indian finance minister said that “a very calibrated position is being taken on cryptocurrencies”. She then stressed that the government “is not ruling out all options”.
Their statements have given the Indian crypto community hope that India will regulate the crypto industry instead of imposing an outright ban.
Do you think the Indian government will block crypto exchanges IP addresses? Let us know in the comments below.
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