Indian Finance Minister, Mr. Arun Jaitely stated in his budget that cryptocurrency is not a legal tender and any kind of payments done using any form of cryptocurrency is illegal. This created a situation of panic among Indian investors. What he meant that any kind of payment made in form of cryptocurrency will be illegal but you traders can still use them as assets.
It was later cleared by Secretary of Economic Affairs, Subhash Chandra Garg that government is not considering cryptocurrency as a currency but as cryptoassets. The reason behind it is that legal currency is monitored by Reserve Bank of India and these are mere cryptoassets. He clarified that anyone can keep these cryptoassets for financial gains provided he pays tax on his earnings.
He also mentioned that Indian government will also try to regulate the exchanges which transact in INR. They will try to monitor the transactions converting INR to any form cryptocurrency and vice-versa. This will help govt. in monitor the earnings of everyone and to earn tax on these earnings.
So, the most important update was that, Indian traders can now trade in "cryptoassets", unless they are trying to purchase arms or guns from bitcoin or any altcoin ;) So, until further update, we can trade in crypto without any worries.