Will bitcoin be regulated? What other risks does it have?

Suppose if is not regulated. Then also you will be at least allowed to sell your Bitcoins. So there are no big risks involved.

Few banks in India like Axis Bank, ICICI Bank, Yes Bank have already signed the agreement with Ripple ( another cryptocurrency ).

bitcoin-in-india

Government bothers about taxes, and money laundering and other illegal activities. A most recent example is the demand of $300 worth Bitcoins from Ransomware software. Criminals can use Bitcoin as payment methods.

Now in Movies, the kidnapper will ask the amounts in Bitcoins instead of risking themselves to meet at some physical place. Just pray that criminals never get to know about Bitcoins.

I think the government will not stop us from using Blockchain technology. Instead will make more rigorous verifications like Aadhar Number, PAN Card etc.

That is the reason why all the Bitcoin wallet companies of India asks your I-Card, PAN Card, Bank account of the same person along with Mobile and E-mail verification.

Government seeks citizens views about its regulation. If you care it to be legalised in India do endorse the same view at MyGov: A Platform for Citizen Engagement towards Good Governance in India portal.

Link: Comments/Suggestions Invited for the Existing Virtual Currencies Framework