Undoubtedly, it would be a mistake to eliminate and punish the use of cryptocurrencies as it would go against the world economic progress that has gone from not accepting them to doing so. South Korea last year tried something similar and had to open up, like China, to create controls but not criminalizing those who possess them. Even less so for such a short period of time, which shows that the government has very little wisdom in this matter. 
RE: India To Propose Crypto Currency Ban.