This is very good reason Excuse for Govt to ban or put strict regulation on cryptocurrency in India. Already draft is ready and now such activities. Though it has nothing to do with legality because even if it was banned then those terrorists would have sold it to any grey market in India or P2P market. Apart from bitcoin popular route for hawala transaction is drugs and bollywood or benami companies. Bitcoin is just new and our agencies are still learning how it works and how to trace. Local police may not even know how bitcoin works.