Probably possible but you will be limited to the tuners on the box so if you only have 2 tuners you will only be able to give out 2 IPTV lists, then you will probably be cut off if you're line provider finds out.
Not sure about encrypting it but you can make your own m3u list via openwebif it would mean opening ports in your router again your leaving your box exposed to anyone accessing your box.
TBF your not going to find info about creating an iptv server here and unlikely on other forums this stuff is done in private.
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