Why Govt of India hates crypto currency?

Governments around the world hate anything they can not control and tax. Crypto currency is termed illegal in many countries for the same reason. People who setup bitcoin ATM were arrested and various other restrictions are put in place to discourage usage of crypto currencies

There are multiple reasons why Govt of India doesn't want to encourage usage of crypto currency such as bitcoin

1. Inability to tax: Govt wants to tax every transaction and make money. Financial transactions attract 18% GST. It is lots of money. If transactions start moving to crypto and people start skip paying taxes, Govt would lose crores of money in revenue. This is the main reason why Govts won't allow crypto. If they can launch their own crypto currency which they can track and tax, suddenly the concept becomes legal.

2. Anti- national activities: Govts need to monitor money laundering, hawala, terrorist fundings, tax evasion and other illegal activities. If Govt agencies don't have a clue who is paying, who is receiving, how much and why, they can't keep a tab. There is high risk drug cartel, terrorists, corrupt politicians and everyone will start using crypto to avoid being tracked.

3. Public losses: Crypto values jump like crazy and at times crash massively. A govt is eventually responsible for its people. People lose money regularly in stock market, ponzi schemes, companies or banks that go bankrupt, individuals to commit fraud and so on. If there is something physical- an address, names of owners/people responsible etc it is easy for investigating agencies to track the culprit. With no control on crypto world, govts dred a situation where public losing all their money and country facing a distress. It is not that Govts compensate those who lose money in conventional ways, but at least govts can act like they are trying.

4. Threat to conventional banking system: ATMs, online payments, UPI, digital wallets etc have reduced the need for people to physically visit a bank. With more and more money exchanging hands in crypto world, physical banks may be rendered useless over time, collapsing an institution that employs lakhs of people in the country.

Governments realize cryptos have lots of potential. Blockchain based crypto currencies are usually more secure, easy to transact and lot swift as they don't have to deal with international regulatory rules, currency conversion rules and other complexities.

What do you think?