MeitY Demands VPN Firms Block Access to Polymarket, Illegal Betting Platforms

The Ministry of Electronics and Information Technology (MeitY) has issued a direct advisory demanding that VPN service providers and internet intermediaries stop facilitating access to blocked online betting and prediction market platforms, specifically naming Polymarket. The advisory, dated April 25, invokes the due diligence obligations imposed on intermediaries under the IT Rules, 2021, warning that failure to comply could expose these firms to legal consequences.

The ministry's concern centers on a specific workaround being used to circumvent domestic prohibitions. MeitY observed that users are exploiting VPN services to access restricted platforms, then converting Indian Rupees into stablecoins such as USD Coin (USDC) to conduct financial transactions on these sites. The advisory explicitly flags this cryptocurrency conversion mechanism as a means of sidestepping legal restrictions on participation in online betting and prediction markets. Under Section 79 of the Information Technology Act, intermediaries enjoy safe harbor protections only if they exercise due diligence and do not knowingly facilitate unlawful activity.

The directive places VPN providers squarely under regulatory scrutiny, signaling that the government intends to hold infrastructure-level actors accountable for enabling access to prohibited platforms. Industry watchers note this represents a tightening of enforcement posture following last year's major policy overhaul targeting online gambling and betting services. The advisory also raises pressure on cryptocurrency exchanges and wallet providers that process the stablecoin transactions enabling these platforms to function. VPN firms now face the choice of implementing blocks or risking penalties under India's evolving digital intermediary framework.