Cryptos are difficult to ban effectively. Just as file sharing has not been banned effectively despite the efforts of various governments for the last 20 years, cryptos too cannot be banned. It is a peer-to-peer network. Nigeria has not succeeded to implement the ban on cryptos. Crypto investors can carry out transactions using peer-to-peer networks, and fiat money. The transactions can happen on other payment platforms.

Decentralised Finance (DeFi) platforms that operate on blockchains can be used to trade in cryptos without any intermediaries such as banks or crypto exchanges. User signups are anonymous on these platforms (no name, id markers suchas email or location). Many Chinese transactions seem to be happening this way after the ban. At least the exchanges do the KYC. DeFi platforms do not . Crypto exchanges are based on servers. DeFi platforms are not controlled by a single or group of servers. These too operate through distributed peer-to-peer networks run by computers across the world.

DeFi platforms and cryptos can be banned by banning the ports — the interfaces that that allow computers to communicate regarding a software. However, in essence it blocks other genuine software utilising the same port.

Even banned exchanges can move abroad. These then can deal with customers through private virtual networks (VPNs).

People can do transactions in other jurisdictions.

Geeta Gopinath, from IMF, is of the opinion that the ban on cryptos may be tough to impose from a practical point of view. A lot of exchanges are offshore and not subject to a particular country’s regulation. A global compact is necessary, as an individual country cannot do the regulation.