India is a corrupt country, I won't be surprise if they do that. Remember that one of a good feature of blockchain technology is about transparency and you don't expect a corrupt official to agree with this new technology. They will use all their power and their connections to limit the use of crypto.
Corruption and taxation are two different things. Applying taxes does not mean that the country applying taxes is corrupt. All the countries charge taxes because their and several administrative as well as defence and social responsibilities of the governemtns; for which money is required. And the source of income for governments is taxes.
But the rate of taxation should be justified. Rate of taxation must be @ low rates. Taxes should be just that ; by charging that amount the tax payer does not suffer huge losses and as a result of high taxation his survival must not be in danger.
The king should charge tax from his citizens the amount so less as honey bee goes to flowers and sucks honey from flower but the survival of the flower is still not in danger. This was the Indian culture which must be followed by the present governments to set high moral standards.