Nobody said taking power from the kleptocrats would occur without a fight.

They may succeed in initially limiting the amount of activity, as rule followers comply and no longer engage in bitcoin-related activity.

But where that activity will see continues expansion is in the person-to-person trading (which can be KYC-Free), remittances -- especially if the "street" (black market) USD/INR exchange rate starts to drift from the "official" (RBI published) exchange rate.