The Indian government may not be in favor of an outright ban on cryptocurrencies, according to an article published by The New Indian Express. One of the publication's sources is a senior government official who attended a committee panel set up by the Indian government in April 2017 to "examine the existing framework with regard to Virtual Currencies." The source told The New Indian Express that "we have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalised with strong riders. Deliberations are on. We will have more clarity soon."
Early this year, the Reserve Bank of India, India's central bank, announced in a press release that it's banning any regulated financial entities from dealing with cryptocurrencies. This announcement forced many major India-based crypto companies to cease operations.