The government of India proposes to ban the Internet Protocol (IP) addresses of companies/exchanges which trade in cryptocurrencies. It is a moot point how far the move could be successful. The implementation will be deferred by 3-6 months so that an exit window is provided to the current investors. However, the move is not foolproof.

There are VPNs or virtual private network services. These could be used. The liberalised remittance scheme of a limit of $250000 could be diverted for buying cryptocurrencies.

Instead, it is better for the government to regulate this sector. There should be checks and balances. There should be a clear taxation policy for cryptos.