Firstly, consider that the Indian government believes every citizen and resident to be a crook and a tax evader unless proven otherwise. That’s why it has been

Firstly, consider that the Indian government believes every citizen and resident to be a crook and a tax evader unless proven otherwise. That’s why it has been pushing for “cashless” (even after the callous and disastrous demonetization exercise in 2016 that outlawed some currency bill denominations), linking taxpayers with a poorly designed and implemented non-revocable biometric based number (called Aadhaar), pushing for this flawed system to be used everywhere, etc. Next consider that the current regime has a charismatic leader who gets a lot of vociferous support for anything that can be spun into the “anti-terrorism” and “national security” angles. Since cryptocurrencies are only used by terrorists and tax evaders dealing in drugs and such (this is a sarcastic take here, but is believed so completely by the supporters of the government), they must be banned.