Indian Finance Minister Arun Jaitley in his recent budget speech said -
The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payment system,
Due to misinterpretation of the speech, there is a fear amongst the Indian investors and there was a panic selling across the crypto exchanges in India.
Till now the Government is continuously criticising and comparing cryptocurrencies with Ponzi schemes but there are no direct actions to ban cryptocurrency exchanges and trading. In the recent budget speech of finance minister, there is the strong indication of strict regulations to eliminate fraud activities rather that cryptocurrency ban.
It seems that Government may not directly ban the cryptocurrency and take other strict actions to protect the interest of cryptocurrency investors.