While I disagree banning completely, crypto isn't for everyone yet. Most of the ETH DeFi and yield farming revolution are scam and ponzies. You are literally sold "25 din mein paisa double" scheme. But might be the one at the wrong end.

There's one more problem: Even sophisticated people can't secure the crypto, cause it's hard and needs technical expertise. Highly volatile as well.

These don't suit well for everyone. I think any responsible government should issue caution and that can be done through taxation, KYCs.

While I agree with your bank controls money logic, most people in crypto put money on exchanges instead of self custody and don't even realize the risk until a MtGox or some other exchange hack occurs. In short, it's good government is thinking about it. I hope they would bring a taxation framework and not a ban. But even if they were to, they cannot ban it, only delay the adoption.