30 August 2026
Govt Plans to Block IP Addresses of Cryptocurrency Exchanges
In January, The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was listed in Lok Sabha's bulletin for the ongoing Budget session. This bill has so far not been introduced and tabled in Parliament. As a part of the bill, the government is reportedly thinking to block the internet protocol (IP) addresses of cryptocurrency exchanges.
"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"- Business Standard reports
This bill intends for creating a facilitative framework of an official digital currency issued by the Reserve Bank of India (RBI) and suspend all private cryptocurrencies in India. Based on Reuters reports, the bill will also penalise possession, issuance, mining, trading, and transferring of cryptocurrency assets.
However, Finance Minister- Nirmala Sitharaman recently clarified that India would not shut all options regarding cryptocurrency. Also, it should be noted that if the government blocks the IP addresses of crypto-currency trading and investment platforms, users can access any website through Virtual Private Networks.
"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," an industry expert told Business Standard.
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