This is where the lack of regulation is a shortcoming that needs to be addressed. Albeit there is a case to be made for how policymakers may try to impose too strict regulation which will hinder Bitcoin growth in the country, having no regulation at all is not that favorable either. The Reserve Bank of India is currently examining the issues associated with using Bitcoin under the current legal and regulatory guidelines.
http://themerkle.com/discussion-about-bitcoin-regulation-in-india-is-far-from-over/
