like you said @firepower
RBI and the finance ministry of the country has issued several warnings in the past. However, they continue to allow exchanges from operating legally. These exchanges operate within the legal boundaries and are fully transparent. But, the government continues to refuse to regulate cryptocurrency, and it's unlikely we'll see that happen anytime soon.
They all know what cryptocurrency is and they trade as well... crytocurrency is the best way to break poverty in any country but the heads are refusing it mainly because it will slow things down for their operations. I think an acceptance for crypto will change alot of life and also India will be filled soon with a mass number of crypto holders looking at your analysis @firepower