As the Indian government prepares to introduce the cryptocurrency bill, there are reports 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 impose an outright ban on cryptocurrencies, including bitcoin.
Blocking IP Addresses of Crypto Trading Platforms
The Indian government is reportedly “considering the blocking of internet protocol (IP) addresses of companies/exchanges on which trading in cryptocurrencies is happening,” Business Standard publication reported Monday, citing an unnamed “source in the know.” This measure, if implemented, will be part of the government’s efforts to impose a ban on cryptocurrencies.
Indian Finance Minister Nirmala Sitharaman recently said that the cabinet note regarding cryptocurrency legislation is being finalized and will be soon submitted to the cabinet. A bill entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is listed for consideration in the current parliamentary session.
The Indian government has attempted to block the IP addresses of adult sites and hundreds of Chinese applications before, the publication conveyed, noting that people were still able to access the sites through virtual private networks (VPNs).
An industry expert was quoted by local media as saying:
Various routes — like VPNs, peer-to-peer trading, using cash to buy/sell cryptocurrencies and use wallets outside India to store and transfer cryptos, using part of the money permitted to send abroad for investment within the liberalised remittance scheme limit of $250,000 can be diverted for buying cryptocurrencies — remain loopholes.
Earlier this month, the Indian finance minister said that “There will be a very calibrated position taken” regarding cryptocurrencies. She subsequently emphasized that the government is “not shutting all options off.”
Her 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 the IP addresses of crypto exchanges? Let us know in the comments section below.