How strongly are they actually enforcing it? Are people still listing their services on localbitcoins? There might still be the ability to sell or buy locally because some of these sellers have international clients and are able to send the money elsewhere. I noticed in India people are still listed on there even though they're facing trouble with bitcoin as well.
That is because the government is yet to come up with a law related to crypto in India. In case, they ban it completely or make it illegal, they will take action against people listed on websites like local bitcoins as well. Current situation is that they tried to discourage bitcoins users by asking banks to cut off ties with Indian exchanges. These means that Indian people cannot deposit or withdraw money from these exchanges using Indian banks.