They might just be thinking of the risk posses by the Crypto currency since it has no traces of transactions identified.

The reasons are the same which are responsible for the negative attitude of the governments towards cryptocurrencies. The cryptocurrencies poses protection and security issues. It can be used for making illegal transactions like drugs and weapon dealing, money laundering acts etc. crypto market can also replace banks due to its technology of blockchain. Obviously the governments want to keep the power in their hands only.

India has not banned crypto 'yet'. Only the ties to banks have been cut off. Banks have been advised by RBI (the central bank) to not provide bank accounts and related services to individuals and businesses dealing with crypto currencies.

AFAIK the gov and RBI initially took a wait & watch approach to study the potential effects of crypto currencies but it took longer than expected and in the mean time several scams ponzi crimes related to crypto surfaced in India, some of them even included politicians and police. Cases ahve been registered and many accused are absconding.

In order to tighten the situation until some concrete stand is taken on regulatory approach, the bank ties have been cut to discourage people from investing.

India cryptocurrency to ban i think is the main reason negative sentiment of the governments unto cryptocurrencies.there are many indian people don't confide that bitcoin.

According to an article I've read, Actually RBI (Reserve Bank of India) has never used the word ban related to bitcoin or cryptocurrency. It only prevents the organization set by the central bank to deal with businesses that are related to crypto currency. Practically, this means the bank must stop deposits and withdrawals to and from the Indian rupee on crypto currency exchanges. This news is widespread and is seen as a "bitcoin ban".

It's not only about India but every government out there (with some exceptions) is trying to demoralize and destroy decentralized systems because it is something that has potential to change the world but on the cost of taking away power from centralised authorities. As we all know that Bitcoin is based on blockchain technology which relies on decentralisation, it is ultimately going to reduce the importance and dependability on the centralised institutions like governments.

Yes, I'm not too familiar with India, but I do remember hearing and reading lots about all of the 'black money' that exists as a result of corruption and such. And that the government was finally starting to take steps to improve that aspect of the economy. So I can understand why they might think crypto could derail their progress thus far.

The Government is concerned that the rapid expansion of Bitcoin will affect the country's economy, which is the main reason.

The main reason is that the crypto currencies are being used for money laundering activities what i understand from many bank personnel .But to be very honest, Reserve Bank Of India has just banned banks from using the money for crypto related activities like buy, sell or deal with any exchange.But i also understand that a committee has been formed to understand the regulations of the crypto and its usage.