Yeah, if not banned, it could be limited by strict regulations. However, that may be softened gradually, step by step over a long period of time. But I don't think Government will lose any tax revenue from legitimate citizens because of this. If not crypto, people will invest in conventional legimtimate avenues like bullions, stock, mutual funds, banks etc. All these are taxable. People who would work in crypto industry will find work in other legitimate industries and pay their taxes. Thus governemnt wants to safeguard banks, financial instituitions and traditional industries by stopping people to divert their money into crypto. Otherwise, it's fiat will lose its charm and value :)

However, Government will lose tax revenue due to illicit investments in crypto. But that's the same story in many fields. The magnitude of black money in our economy is no secret. It always will run in parallel, I guess.

You're right about the lose in liquidity in a scenario of ban, when it comes to conversion to INR. But personally, I'm hoping that in long run, I may not have to convert my crypto into fiat. I won't ever like to convert my crypto into fiat. Hope, we'll be able to create such a world soon!

Thanks for sharing your opinion on this burning issue!