The Ministry of Electronics and Information Technology (MeitY) on Tuesday issued a strong advisory to VPN service providers and intermediaries, directing them to ensure their platforms are not used to access illegal and blocked online betting and prediction market platforms such as Polymarket.
It said some users were allegedly bypassing restrictions through VPN services and converting Indian rupees into virtual digital assets like USD Coin (USDC) and other stablecoins to participate in such platforms.
What did it say?
“MeitY hereby reiterates, with heightened emphasis, that all VPN service providers and other intermediaries must make reasonable efforts to not host or store or permit the access to any such platforms making available unlawful information, including ‘Polymarket’ and such other similar violative platforms operating in violation of law,” the advisory read.
It added, “It is further observed that certain users are circumventing the legal restrictions imposed on such platforms by misusing VPN services to access these websites. In addition, such users are engaging in financial transactions through conversion of Indian rupees into virtual digital assets such as USD Coin (USDC) or other stablecoins, thereby enabling participation in such platforms despite domestic prohibitions.”
MeitY mentioned that it had observed certain VPN providers and intermediaries facilitating access to websites blocked under Section 69A of the Information Technology Act, 2000, raising concerns over unlawful online betting, financial risks, regulatory violations, and threats to public order and economic integrity.
The ministry stressed that intermediaries, including VPN service providers, are legally bound to exercise due diligence under the IT Act and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to ensure that their platforms are not used for hosting, transmitting, or enabling unlawful content or activities.
It further pointed to the Promotion and Regulation of Online Gaming Act, 2025, which expressly prohibits online real-money gaming activities in all forms. According to the advisory, any platform directly or indirectly facilitating access to such prohibited services, including through circumvention mechanisms, would be violating both the PROG Act and the IT Act.
What if intermediaries don’t comply?
The ministry warned that failure to comply with due diligence obligations could result in intermediaries losing protection under Section 79 of the IT Act, which grants exemption from liability for third-party content. In such cases, they could face legal action under the IT Act, the Bharatiya Nyaya Sanhita (BNS), 2023, and other applicable online gaming laws.
MeitY also reminded VPN providers that they are obligated to provide information or assistance to government agencies for lawful investigations, cyber security matters, and verification purposes within stipulated timelines.
“Any non-compliance by the intermediaries with the statutory due diligence obligations may result in loss of exemption provided under Section 79 of the IT Act and exposure to consequential legal action under applicable laws,” the advisory stated.
Source link
#MeitY #flags #VPN #providers #intermediaries #enabling #access #blocked #betting #prediction #platforms #Check #advisory #Mint
