Trading in krypton coins or the operation of an exchange itself is not illegal under existing laws or regulations. Prohibiting essential services such as banking to a legal entity could be illegal.
My English is fatal and I can't understand this, the exchange of crypto is not illegal, so it is the banks that don't allow them to manipulate finances under any other premise than theirs? don't accept the digital economy?
We have no regulation/laws that prevents setting up of a legal cryptoexchange. anyone can do it technically. however, banks (mostly all major ones) regulated by India's central bank are not allowed to provide services to such legal entities.
In my country something similar happens, it is practically a hatred to achieve cryptographic exchanges.