India Government Considers Blocking IP Addresses of Crypto Exchanges

The government of India may block IP addresses of cryptocurrency exchanges as part of a bill to ban trading in decentralised digital currencies.

March 22, 2021 | AtoZ Markets The Indian authorities are considering blocking the IP addresses of crypto exchanges and companies associated with digital assets. This is reported by the local edition of Business Today, citing a knowledgeable source.

Claims of India Government Blocking IP Addresses of Crypto Exchanges Unverified

Information about a possible blocking of IP addresses appeared against the backdrop of the upcoming parliamentary consideration of the draft law on the regulation of the cryptocurrency market.

Experts interviewed by the publication questioned the success of this initiative. Earlier, the Indian authorities failed to finally block the IP addresses of adult websites and hundreds of Chinese applications due to the active use of VPN services by the population, writes Business Today.

VPN, p2p trading, buying cryptocurrency for cash and using bitcoin wallets outside India – these loopholes will allow citizens to continue to use digital assets,” – said the expert in a commentary to the publication.

At the time of writing, the Indian authorities have not yet confirmed the accuracy of the information.

Read also: ‘We Plan To Regulate, Not Ban Cryptocurrencies” Indian Finance Minister

Recall that in 2019, a working group under the Government of India concluded that there is “no value at all” at the heart of cryptocurrencies. The authorities were advised to ban all digital assets , except for tokens issued by the central bank. At the same time, the government commission proposed to introduce fines of up to $330,000 and prison sentences of up to 10 years for miners and traders.

According to a number of media outlets, the document banning cryptocurrency trading was submitted to the Indian Council of Ministers in September 2020.

In February 2021, Bloomberg, citing an anonymous senior Finance Ministry official, said that if the ban was introduced, asset holders would have three to six months to close positions. At the end of the transition period, the investment will be liquidated.

As AtoZ Markets reported, according to a senior official, India is considering a bill that would criminalize crypto miners and traders.

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