India may block IP addresses of cyptocurrency sites, exchanges

The Bill would reportedly criminalise possession and trading crypto-assets

The government is now reportedly considering blocking IP addresses of companies or exchanges where cryptocurrencies are being traded.

“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,” a source told Business Standard.

Read | India to ban trading, possession of cryptocurrency

Last week Reuters had reported that India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets.

The Bill, one of the world's strictest policies against cryptocurrencies, would reportedly criminalise possession, issuance, mining, trading and transferring crypto-assets, the report quoted an official as saying.

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The measure is in line with a government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency. However, the government has maintained that it would use blockchain technology - a secure database technology that is the backbone for virtual currencies but also a system that experts say could revolutionise international transactions.

(With agency inputs)