Regulating cryptocurrencies: Treating them as speculative assets

What has been the recent events surrounding the status of cryptocurrencies in India? Why is the Union Government opting for regulation rather than outright banning?

The Union Government is said to be considering a proposal to tax cryptocurrency transactions in the country. The move would bring cryptocurrency trading, which has till date happened outside the ambit of the law, into the formal economy. The proposal has given hopes to crypto-enthusiasts that the Government may decide to regulate rather than impose an outright ban on cryptocurrencies.