Crypto currency in India is not reglauted. In every industry that has survived, the adoption has always been top down. The regulators are first one to come in followed by the big organisations that create needed infrastructure and finally the retail end users are the last ones to join. It usually balances power in the hands of bigger companies and regulators.
Crypto is the only industry, which has started bottoms up. You see p2p trades happening even before regulators had any clue what was going on. Retailers owned more BTC than institutions, governments didn't know or created any framework, organisations didn't build any infrastructure. It did empower the common man and tilted the balance on power in their power.
This is one big reason that so much chatter is there against bitcoin and the industry at large. Since it is by and for retailers so even if it is banned, it will not die, since billions of small people are all around the world. Someone, somewhere will hold Bitcoin, in some part someone else will keep on mining. If regulators leave this alone, it will grow itself. If they don't leave it alone, it will still survive. As honorable Finance Minister Nirmala Sitharam said - "We cannot be moving ahead as if this doesn't exist".
Having said that, controlled moderate regulation is still better as long as its not stiffling. The definition of decentralisation is still evolving. it's possible that next generation of crypto apps would require KYCs and filter out terror, blood or drug money and purge the system.
Vinshu Gupta, the author of the article is Founder and Director, Nonceblox Blockchain Studio