The Indian authorities are considering blocking the IP addresses of cryptocurrency exchanges and companies related to digital assets. This is reported by the local edition of Business Today, citing a knowledgeable source.
Information about a possible blocking 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.
The Indian authorities have not yet confirmed the accuracy of the information.
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, a document banning cryptocurrency trading was submitted to the Council of Ministers of India 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.
In March, according to a senior official, it became known that India would consider a bill introducing criminal and administrative liability for miners and traders .