India vs Pakistan: Who Is Winning The Crypto Battle? | Markets – Times Now
India dominates South Asia’s crypto market, but Pakistan is rapidly closing the gap with bold regulations, a central bank digital currency, and mining initiatives, setting the stage for a high-stakes rivalry.
New Delhi: In South Asia’s fast-evolving crypto space, a fierce rivalry is unfolding, not on the cricket pitch, but in the race to capture the digital asset future. As global crypto adoption accelerates, India and Pakistan are taking divergent paths to position themselves as regional powerhouses. India leads by scale, but Pakistan is catching up fast with bold regulatory moves.
In 2025, the Asia-Pacific (APAC) region solidified its position as the global epicenter of grassroots crypto adoption, with India, Pakistan, and Vietnam leading the charge as populations embraced both centralised and decentralised crypto services.
According to the Chainalysis Global Crypto Adoption Index, the 12 months ending June 2025 saw APAC become the fastest-growing region for on-chain crypto activity, posting a 69% year-over-year increase in value received. Total crypto transaction volume surged from $1.4 trillion to $2.36 trillion, driven by strong engagement in India, Vietnam, and Pakistan.
India: Scale, Users, and Global Leadership
India has quietly emerged as one of the world’s most active crypto markets. Chainalysis ranks India at or near the top globally in on-chain activity, driven largely by a massive retail user base and growing institutional interest.
Platforms like CoinDCX, WazirX, and CoinSwitch have built a robust exchange ecosystem, providing liquidity and seamless fiat on-ramps for millions of Indians. The country’s crypto economy is vast, dynamic, and increasingly influential.
Yet, New Delhi’s regulatory approach remains cautious. The government imposes a 30% tax on crypto gains and a 1% tax deducted at source (TDS) on every transaction, reducing speculative trading but adding compliance burdens. A comprehensive regulatory framework is still under discussion, leaving exchanges and investors navigating a complex environment.
Pakistan’s Crypto Leap
While India built momentum early, Pakistan is catching up with surprising speed. After years of regulatory uncertainty and outright bans, Islamabad pivoted sharply in 2025, introducing the Virtual Assets Ordinance and laying the groundwork for a formal licensing regime.
The forthcoming Virtual Asset Bill 2025, currently under consideration, aims to regulate digital asset transactions nationwide. It proposes the creation of the Pakistan Virtual Asset Regulatory Authority (PVARA), tasked with licensing, monitoring, and overseeing virtual asset providers and exchanges.
Under the bill, virtual assets will be transferable nationwide but cannot be used to purchase goods, services, or make investments outside the prescribed digital ecosystem, nor will they be recognised as legal tender. This approach balances innovation with risk mitigation.
Habibullah Khan, CEO of Penumbra, noted that the SBP’s current stance is a continuation of its earlier narrative. “You must remember a year ago, in September 2024, SBP Act amendments were proposed that would define an SBP-issued digital currency, paving the way for a CBDC framework.,” ThePrint report cited Habibullah as saying.
He added, “Pakistan is number 3 in global crypto adoption so far in 2025, behind India and the US, and currently has over 40 million crypto wallets. In many places in Pakistan, excess power exists, which would make crypto mining viable. All Pakistan needs is a legal blueprint.”
In a significant policy shift, the SBP recently agreed in principle to legalise digital currencies, signalling formal recognition of cryptocurrencies. The central bank also announced plans to launch a central bank-backed digital currency (CBDC). During a briefing to the Senate Finance Committee, SBP Deputy Governor Inayat Hussain confirmed that the advisory previously restricting cryptocurrencies will be withdrawn, paving the way for a regulated framework for trading and ownership.
“Technically, the SBP never declared crypto illegal. That is not their mandate. What SBP said in 2018 was that crypto cannot be used in Pakistan by the financial institutions it regulates until a legal framework exists,” Habibullah Khan told ThePrint.
The shift is part of a broader push to position crypto as an economic growth tool. The government is exploring bitcoin mining using surplus power, considering a strategic bitcoin reserve, and inviting global exchanges to establish licensed operations. Pakistan’s crypto user base is estimated at 15–20 million, significant given its smaller population.
However, Pakistan’s crypto ecosystem remains nascent, lacking India’s depth of exchanges, liquidity, and institutional participation. While regulatory rhetoric is encouraging, the real test will be implementation — building a predictable, investor-friendly environment while meeting international compliance standards, including anti-money laundering (AML) measures.
The Road Ahead
India currently leads in adoption, infrastructure, and global prominence. But Pakistan’s rapid policy shift and mining ambitions could make it a formidable competitor within the next few years, especially if India delays regulatory clarity.
The coming 12–36 months will determine the outcome: whether Pakistan successfully licenses exchanges and establishes bank rails, whether India introduces a unified regulatory framework, and how both nations handle compliance in the eyes of global financial partners.
For now, India leads, but Pakistan is gaining ground through bold policy and ambition.
Anurag Kumar
Anurag Kumar is an Assistant Editor at Times Now, where he plays a pivotal role on the News Desk, driving impactful coverage across national politics…View More
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