Re: What will you do if crypto is declared illegal in India ?
Next ... If you want to become completely Anonymous and remove all trace of your existence, Then its very simple
1 - I will convert all my BTC and other coins to some privacy crypto like HoriZen or ZCash (as I have already used them)
2 - Then I will use shielded transaction to send to to another shielded address, Thereby making it untraceable
3 - Convert HoriZen back to BTC using Decentralized exchange
4 - From the Decentralized exchange I will send BTC to a new BTC address.
Thus making myself completely anonymous
Nice, looks like you have given quite a thought to it. Looks promising, the only flaw being that you still get caught if you try to encash your BTC. I think a VPN would suffice if your core concern is getting tracked.
I would take this approach where I will get a very good/paid VPN. Connect with your friends in countries where cryptocurrency is not illegal. Access your Wallet through VPN/Other safe methods which cannot be tracked to your IP. Whenever you want to trade your Bitcoins/Cryptocurrency just ask your friend to execute the order. You can have the payment through legal channels then.
But I don't think that the government will go as far as banning the cryptocurrency in the country.