only those people who do not have any responsibility for the use bitcoin prohibited.
good people will use bitcoin for positive things. bitcoin is a useful technology that must be used carefully.
Some people does use those to buy things that are ilegal, but i doubt those make the buyer and seller bad persons at all, we all have a problem, some is alchool, others drugs, mine is internet, this makes me a bad person?
India doesnt allow to gamble, there are several indians gambling with bitcoin, they find a solution to their problem, its a bad use of bitcoin as well, but this even being ilegal its allowing those people to gamble. As fiat bitcoin cant be controled where it will be spent, soo its always people choise where they do business.