The crypto, as well as fiat money, are quite similar in this sense since none of them is backed by anything. So the things would go in a similar fashion for both except the fact that crashing crypto is not as easy as fiat money laundering.
Bitcoin is an innovative form of money. Until it evolves, it should be treated as an asset instead of currency. Banning will lead to many economical crisis like loss of employment, pushing India behind in innovation, loss in income tax as well as illegal usage.