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Also heard that Indian government considering putting tax regulations for crypto trading weeks back because they know it is not possible to ban cryptos so why not make some revenue from it?
Exactly! It doesn't make any sense to ban cryptocurrencies. The government's view is that cryptocurrencies are being used in illicit activities and money laundering due to its anonymous nature. But the fact is, just by writing something in law book you still won't be able to stop such activities. People can still use cryptocurrencies for illicit activities and get away with that.
Banning will only result in stoppage of legal activities like trading on KYC-exchange, using cryptocurrencies to pay for the legal foreign contracts, using cryptocurrencies as the mean of payment in legal business, etc. This would rather result in lost-revenue for government as all these activities are good source of income for government.
The on-going discussion in Indian section:
https://bitcointalk.org/index.php?topic=5313220