I think allowing it to be traded as stocks is not really a problem. One would be able to buy/sell it more openly and it will be more regulated and easier to pay tax on it, etc. I don't mind if they make it that. But I do hope that they keep it legal. Bittrex added 7 more countries to its list of countries where it doesn't offer its services. And I am happy to see that India is not a part of it, still. And I hope it remains that way.

What government needs is to learn more about it so they become less paranoid of it. And make it more easily accessible to general public and make regulations on how/how-not to use it. That's it. The more open they make it the less it will be used for illegal activities.