The controversial legislation will force internet service providers to monitor every page its users visit and turn the data over to police, tax officials and other security services if deemed necessary.
Wales, a staunch opponent of the proposals, told MPs that he will take measures to protect user privacy against the so-called snooping bill.
"If we find that UK ISPs are mandated to keep track of every single web page that you read at Wikipedia, I am almost certain we would immediately move to a default of encrypting all communication to the UK," he said.
"That kind of response for us to do is not difficult. We don't do it today because there doesn't seem to be a dramatic need for it or any dramatic threat to our customers, but it's something that I think we would do, absolutely."
If Wikipedia was to introduce encryption, the government would have to hack into the website to find out which specific pages users are visiting, which Wales claims is not something a civilised democracy wants to be involved with".
Wikipedia previously blacked out is pages in protest against the SOPA and PIPA anti-piracy bills.