Pakistan vs India Crypto Adoption: Regulation Shift Reshapes 2026

What Makes Pakistan vs India Crypto Adoption Approach Distinct

The debate around Pakistan vs India crypto adoption is gaining fresh attention after Pak made a clear regulatory move, while India, known as the largest crypto user-base holder, continues to take a cautious path. Although both the neighboring economies have their own reasons, the difference highlights how two are approaching crypto in 2026.  

Source: X Official

Pakistan Crypto Move: Giving Pakistan vs India Crypto Adoption Fuels

On Feb 20, 2026, the Pakistan Virtual Assets Regulatory Authority (PVARA) officially launched its regulatory sandbox. This allows digital asset and Web3 companies to test products in real-world conditions under government supervision. 

Source: PVARA Official

The sandbox focuses on tokenization, stablecoins, crypto remittance, and on/off-ramps. These areas matter deeply for the country, where annual remittance inflows often exceed $30 billion. By using blockchain, transfers could become faster, cheaper, and more transparent. 

This approach reduces risk for users while giving startups room to innovate. Local and international crypto communities have welcomed the move, seeing it as a shift from uncertainty to structured adoption. 

India’s Approach Highlights Regulation Gaps

In contrast, thwe gap looks uneven when viewed from India’s side. Cryptocurrencies are legal to hold and trade in the country, but remain in a gray zone with no dedicated law. 

Even after having the largest crypto-involved population, the central bank and the government of the country did not see crypto as a safe option. Exchanges must comply with strict AML rules under FIU-IND, and taxes remain high–30% on gains plus 1% TDS on transactions. 

Instead of digital assets, the nation is more emphasizing on digital infrastructure, i.e. Artificial Intelligence, UPI systems. 

Where Pakistan vs India Crypto Adoption Stands Today: Reasons and Positions

Pakistan: Economic Challenges Pushed Adoption High

As per Chainalysis, Pakistan is emerging as one of the fastest-growing markets in 2025, as the nation ranks second in APAC region, and overall third, only after India and the US. 

The reason behind is widely seen as the weakening economy. Although showing a significant rebound from the 2023 peak era, challenges remain. Narrow tax base, weak exports, climate vulnerability, reliance on remittances, and a costly business environment continue to limit inclusive growth, and push towards decentralized money.

The country receives $30B+ in annual remittances, making crypto-based transfers a practical solution. To manage this, regulators launched a sandbox covering tokenization, stablecoins, and remittances under oversight. Looking at the country’s intensified pace, global attention has followed, with Changpeng Zhao suggesting Pakistan could soon rank #1 in digital asset acceptance.

India: Large -Scale Adoption Under Tight Control

The nation is the world's top recipient of remittances with a record $135 billion in 2025. It also has one of the largest digital asset markets, with more than 100M users. Many major platforms like Coinbase, Binance, KuCoin, Bybit, have operated again after heavy fines and strict rules.

The only reason behind the denial of cryptocurrencies legalization or a proper framework is its use in illegal activities like money laundering, terror funding. India also leads in many crypto-related crimes, supporting government views somehow. 

Even so, adoption hasn’t slowed, estimates suggest 70–75% of trading volume has moved to offshore platforms, and major investments continue. But many prominent personalities highlight that real adoption in the country still lies in clear regulations.

In The End

As guidelines from Pakistan’s sandbox roll out, the gap may widen further, unless Indian govt. adjusts its stance. For now, Pakistan appears more open to shaping cryptocurrency’s future through controlled adoption rather than restriction.

Note: This article is based on publicly available reports, and industry data to explain policy approaches toward cryptocurrencies. It does not promote or discourage cryptocurrency use and should not be interpreted as financial, legal, or investment advice.