Why India is still undecided on legalizing crypto-currencies?

There have been lots of talk regarding legalizing crypto-currencies in India. There are 9 crypto-exchanges operating in India, and most them have stopped taking new registration as they are apparently over-crowded.Indians citizens have invested like crores of Rupees, still, the government couldn't take a clear-cut decision.And I feel it will be very tough for them to decide, or take a knee-jerk reaction on crypto-currencies in India.
I have jotted down few points (except drugs trafficking and terrorist funding) which I think would be taken into consideration by the government.

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India's Parallel-Economy

India's Parallel-Economy, or simply the black money economy is immense, lucrative and widespread, it has grown from 3% at the time of Independence to 50% before 2017.

To curb this parallel economy on 8th of November 2017, Prime Minister Narendra Modi demonetised 500 and 1000 Rs notes, which in itself was a drastic step but was poorly implemented. Most of the black money got converted into gold and other metals which is hard to track.

If crypto-currencies are introduced in India the hawala system which carries out in almost every business will shift to Blockchain. People would start transacting on blockchain to evade tax and keep government at bay.

Tax Evasion

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We have a population of 1.2 billion and according to a report of 2013, only 1% of Indian population paid their taxes, i.e 12.5 million individuals out of 1.2 billion people.

There have been serious cases of tax evasion and corruption, and if channels like bitcoin and altcoins (which maintain anonymity) are opened for general public, more people while start accepting bribes in crypto-currency or bitcoins, hence developing an untraceable parallel economy and more cases of tax-evasion.

Business and Employment

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India has more than 50% of population below the age of 25 and 65% below the age of 35% and according to one report around 8-10 crore, people will be searching for jobs 2021. To fulfil the demands of increasing employment many initiatives like Startup India and Make In India have been taken. But major employment comes from agriculture and SMEs sector, to push the growth of micro and small-scale enterprises capital on low- interest rates needs to be provided. It is only feasible when there is more and more money in banks and in people's accounts, that's why Indian government is pushing digital transaction.Again thanks to demonetisation, are increasing rapidly.

I think as people become aware of crypto-currency, more people will choose them over keeping there money is banks. Disrupting lower pyramids business and economy. Many Indian are still hoping to see big changes in repo-rates by RBI, as they need capital investments for their businesses and seeks the help of government and banks.

Conclusion

We all know that blockchain technologies are going to disrupt most of the internet companies. In future, we may see a lot of companies emerging across the globe working on Blockchain. And I'm eagerly waiting for the government announcement regarding crypto-currencies as we don't want to lag behind as far as technology goes. We missed the industrial revolution and then the internet and electronic companies boon in 98-2000s. I don't want that majority of talented and hard-working Indians just becomes employs to big international companies when they could start their own businesses and could provide employment to 100s other.

There have been crackdowns and income tax 'surveys' conducted at 9 exchanges, which is not stopping people from investing in bitcoin and altcoins. I think it's not going to stop and blockchain will eventually make it way in India.How they gonna regulate to track people earning? By introducing our own crypto-currency Laxmicoin or strict regulation and KYCs only future will tell.!

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