India’s Tech Czar Demands VPNs Ban Polymarket or Face Legal Doom

by
Show AI Summary
MeitY intensifies crackdown on offshore betting by issuing advisory to VPN providers and internet intermediaries
VPN service providers are required to comply with due diligence obligations under the IT Act and Intermediary Guidelines
Intermediaries must take immediate action to prevent access to unlawful platforms involved in online betting and prediction markets

India’s Ministry of Electronics and Information Technology (MeitY), ever the paragon of bureaucratic urgency, has decided that the time has come to crack down on offshore betting with the fervor of a Victorian moralist encountering a champagne flute. In a move as thrilling as a tax audit, the ministry has issued an advisory to Virtual Private Network (VPN) service providers and internet intermediaries, demanding they either block Polymarket or risk losing their legal safe harbor-a fate as delightful as being exiled to a life of manual labor.

According to an official advisory, the ministry is “raising alarms” over the “systematic misuse of circumvention tools and stablecoins” to access “prohibited prediction markets.” One might imagine the officials clutching their pearls in the hallowed halls of New Delhi, horrified that citizens might dare to gamble with digital assets instead of traditional currency. The document, dated April 25, 2026, notes that platforms like Polymarket are being accessed despite being blocked under Section 69A of the Information Technology Act, 2000, with users “increasingly relying on VPN services to bypass restrictions.” One wonders if the ministry has considered banning the internet itself, which seems to be the only thing more pervasive than the “unlawful” activities it deems so nefarious.

VPN misuse and crypto transactions

MeitY, ever the connoisseur of regulatory overreach, has noted that users are “circumventing legal safeguards” by using VPNs to access restricted platforms. By “masking their location and converting Indian Rupees (INR) into USD Coin (USDC),” residents are “participating in prediction markets that operate outside India’s regulatory perimeter.” One can only imagine the horror of a government that cannot control its own citizens’ financial choices, as if the mere act of converting currency were a crime worthy of a public flogging.

The ministry’s concerns are “serious,” they say, relating to “unlawful online betting, circumvention of regulatory frameworks, potential financial risks, and threats to public order and economic integrity.” One might suggest that the real threat lies in the government’s inability to keep pace with technological innovation, but such thoughts are likely heretical in the eyes of the ministry.

The advisory emphasizes that VPN service providers and intermediaries must comply with due diligence obligations under the Information Technology Act, 2000, and the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. This is, of course, a polite way of saying, “You are now responsible for policing the internet, or else.”

Under these provisions, intermediaries are required to ensure their platforms are not used to host, transmit, or provide access to “unlawful” information, including content that “could harm public order, sovereignty, or economic security.” One might ask, what exactly constitutes “economic security” in this context? Perhaps the mere existence of a prediction market, which, in the eyes of the ministry, is as dangerous as a rogue asteroid.

MeitY stressed that intermediaries must take “immediate and effective action” to prevent access to unlawful platforms, including those involved in online betting and prediction market activities. This is a call to arms for internet companies, who must now act as both gatekeepers and enforcers, lest they face the wrath of the state.

Online gaming law strengthens enforcement

The advisory gains its strength from the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act), which prohibits all forms of real-money online gaming in India. This landmark legislation, which “removed the previous judicial ambiguity surrounding ‘games of skill,’” has rendered any platform where users stake money or digital assets in expectation of a reward as an “online money game” and strictly prohibited if not licensed by the National Online Gaming Commission. One might wonder if the ministry has considered licensing its own bureaucratic processes, which seem to be the true “games of skill” in question.

It clarified that any platform facilitating or enabling access-directly or indirectly-to such activities, including through VPN-based circumvention mechanisms or financial transactions, would be in violation of the law, regardless of whether the games are based on skill or chance. This is a masterclass in legal ambiguity, ensuring that even the most ardent libertarians will find themselves in violation of some obscure provision.

MeitY also warned that failure to comply with due diligence requirements could result in the loss of safe harbour protections under Section 79 of the IT Act, which shields intermediaries from liability for third-party content. This is a gentle reminder that in India, the internet is not a place of freedom, but a realm of constant surveillance and compliance.

Intermediaries that fail to act or are found to be aiding or abetting unlawful activities may face legal consequences under applicable laws, including the IT Act and the Bharatiya Nyaya Sanhita, 2023. The advisory further highlighted that intermediaries are obligated to provide information or assistance to authorized government agencies for investigation, cybersecurity, or law enforcement purposes within prescribed timelines. One can only imagine the bureaucratic labyrinth that awaits those who dare to resist.

Broadening the surveillance net

The advisory reflects growing concerns among regulators over the misuse of VPN services and digital assets to bypass restrictions on online betting and gaming platforms. This is not a surprise, given the government’s track record of treating technology as a threat rather than a tool for progress.

As enforcement intensifies, intermediaries are expected to play a more proactive role in monitoring and preventing unlawful activities, ensuring compliance with India’s evolving digital and financial regulations. One might suggest that the government should focus on improving its own infrastructure rather than micromanaging citizens’ online habits, but such suggestions are likely to be ignored.

In a recent development, India’s MHA has issued an advisory on Trust Wallet drainer scams, flagging fake “BNB Chain verification” sites that trick users into approving malicious smart contracts through Binance-to-Telegram social engineering tactics. This is a reminder that in India, the only thing more pervasive than the government’s reach is the ingenuity of scammers, who seem to have mastered the art of exploiting both technology and human gullibility.

By targeting both the infrastructure of illegal betting (VPNs) and the tools of crypto-fraud (malicious smart contracts), India is signaling a zero-tolerance policy toward unregulated digital gateways. One might say the government is playing a game of chess, but given its track record, it’s more like a game of Whac-A-Mole, where every attempt to address one issue only spawns another.

Read More

2026-04-30 10:28