Media reports possible blocking of cryptocurrency exchange IP addresses in India

Indian authorities are considering blocking IP addresses of cryptocurrency exchanges and related digital-asset companies, according to a report by Business Today, citing a knowledgeable source.

Information about the possible blocking appeared amid the upcoming parliamentary consideration of a bill regulating the cryptocurrency market.

Experts surveyed by the outlet questioned the prospects of this initiative. Earlier, authorities in India failed to permanently block IP addresses of adult sites and hundreds of Chinese apps due to widespread VPN use, reports Business Today.

“VPN, P2P trading, cash purchases of cryptocurrency, and using Bitcoin wallets located outside India — these loopholes will still allow citizens to continue to use digital assets,” the expert said in a comment to the publication.

Indian authorities have not yet confirmed the veracity of the information.

In 2019, a government-commissioned working group concluded that cryptocurrencies have no intrinsic value. It recommended banning all digital assets except those issued by the central bank. At the same time, the government commission proposed fines of up to $330,000 and prison terms of up to 10 years for miners and traders.

According to several media outlets, the bill to ban cryptocurrency trading was put before the Indian Cabinet in September 2020.

In February 2021, Bloomberg, citing an anonymous senior Finance Ministry official, reported that if the ban is introduced, holders of assets would have three to six months to close out their positions. After the transition period, investments would be liquidated.

In March, according to one senior official, India would consider a bill introducing criminal and administrative liability for miners and traders.

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