India definitely needs to legalise bitcoin and other virtual currencies cause they will be playing significant roll in world's economy and we don't want to be left out.

VCs should be observed/regulated. Blockchain technology should be supported by building more than just VCs using it. Banning would only impede the benefits VC and blockchain technology would bring to us, and besides, banning wont stop illegal activities from taking place. It should be linked to PAN to analyse the inflow/outflow happening. The companies providing VC services should be made legal with proper KYC guidelines given specifically keeping in mind the dynamics of VCs.

As people trade in shares currency commodities, so they trade in crypto currency. It should be legalized and texed @short term gain to participate Indian people in the Global exchanges to earn money. We should have traveled with the whole World, not alone.

Decentralised currency is now the way of life especially when banks charging amount on small transactions as per their will. Either get into the world of blockchain or be left out.
Should not be legalised now and we should wait for some time.
It should not be heavily taxed also.

a) Virtual currencies should be legalised in India as many other countries legalise it and earn income in terms of tax.
b) i) KYC must be complete for all Bitcoin exchanges, also they must be registered with SEBI or similar governing body.
ii) Initially its usage must be allowed at safe and secure exchanges and portals. Then considering digital India drive it must be allowed to use on merchant sites. Slowly then it can be made valid option to pay on all Govt sites after monitoring its use.

Virtual currencies or cryptocurrency or you can say bitcoin is nothing but different products based on the technology called blockchain. Blockchain being one of the best thing happening to mankind after internet has truly decentralised and amazing potential to change the real world problems and remove human interference and dependence from a number of fields like supply chain, financing , remittance and counting. Govt should not even think about banning the innovative technology.

Indian Government Accept and Needs proper legalisation of cryptocurrencies

It's also play a great roll of employment so please do legislation of bitcoin

The IRS in the US decided in March 2014, to treat bitcoin and other virtual currencies as property for tax purposes, not currency. There are some regulations like BitLicense - https://en.wikipedia.org/wiki/BitLicense. But there seems to be some issues with respect to the acceptance of this idea. Though it is a good idea to regulate this as an asset unlike to regulate like a currency.

Banning virtual currencies in this current trend is a backward step of digital India.Just regulate the VC exchanges in the country and have good control over them is fine enough. Banning is actually impossible while looking at its growth..