The Indian government is considering to block the internet protocol (IP) addresses of cryptocurrency exchanges as a part of its upcoming ban on digital currencies, according to a report by Business Standard.
“By doing so, the government may succeed in blocking known sources of platforms permitting trading and investment of cryptocurrencies. Still, the measure taken will not be foolproof in successfully executing the ban,” an industry insider told local media.
The government already listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in the bulletin of the ongoing Parliamentary session, which will end on April 8 but did not table the bill yet.
Mixed Reactions from Ministers
Though earlier ministers revealed that the bill will put a ban on all cryptocurrencies in the country, except for those issued by central banks. But, the country’s finance minister recently hinted that it might not be a blanket ban on crypto operations. These mixed reactions created uncertainties among local crypto investors.
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However, it is not clear if the IPs will be blocked only for domestic crypto exchanges or international ones too.
The Indian central bank already tried to curb local cryptocurrency circulations by limiting banks and financial institutions from serving cryptocurrency exchanges. Though the much smaller exchange shuttered, major local exchanges survived by offering peer-to-peer services.
Even if IPs are blocked, savvy crypto investors still can continue digital asset trading using virtual private networks (VPNs).
“Various routes — like VPNs, peer-to-peer trading, using cash to buy/sell cryptocurrencies and using wallets outside India to store and transfer cryptos, using part of the money permitted to send abroad for investment within the liberalized remittance scheme limit of $250,000 can be diverted for buying cryptocurrencies — remain loopholes,” the industry investor said.