Because no one can check your phone without search warrant, but bank can check your bank tx and govt will ban P2P site like Localbitcoins and Paxful. And Indian site will shutdown because it will be punishable to holding crypto, so how they can run platform for trading crypto in India.
We can use VPN to access the sites right?
Indian government asking everyone to pay everything you are buying digitally or send or receive money in digital as well so its hard for the banks to decet which one coming from crypto related people in 1.4 billion populated country.