That could be the case! But it's not clear yet as the gazette notification doesn't explicitly speak about this regime. But brace yourself for such legislation to be put in place. As of now, it should be OK if you are reporting your crypto income in your income tax return and pay 30% tax on it. In that case, you will be saved from future hassles because then you will be able to prove your good intention.

What I foresee, is an effective death of crypto market in India. Firstly, the government discouraged crypto to fiat transactions by imposing 30% tax and now its regulation under PMLA act. Probably that's what the government wants!