Since we know that Government of India has neither recognized nor said that its trading is illegal. But due to its extraordinary gains in made by the traders, the government of India is planning to put a Tax on the gains made from trading so that it can make a huge earning and put it in their exchequer. In this way the roads for investment and trading automatically gets legalized. But in case if an individual makes a loss the Government will not play any role in it since this currency is not controlled by any Body. For example in Indian Stock Market if any company conducts a fraud then there is a body called SEBI which protects the interest of the small investors, but in case of crypto currency or Bitcoin the Risk is entirely into the hands of the Investors. But I will still say that it is a good move by the Government as it will bring more and more participation from the Indian investors.
And in the long rung once more people will participate there will be forum from the investors of the Indian side as well and will have their say in the coins in which we are investing this will bring certain control from our side as well and will be a win win situation for both of us.