Yes ! This government, possibly can!..., the biggest reason being they want "control" and keep all monitoring & regulations of Fiat and cryptos under their direct control. The cryptos being a grey area for them where their direct monitoring and surveillance is not happening and a major rise and rise of Bitcoin, sudden surge of money flow (especially in India) into cryptos is definitely giving them sleepless nights, hence such news coming up. Money laundering & Tax evasions, saving in cryptos and redeeming them anywhere in the world is the key reason for them to seriously consider take some stringent measures.