Market News

Crypto Regulations in India and Pakistan: A Tale of Two Approaches

The landscape of cryptocurrency adoption in India and Pakistan is evolving, particularly in 2026 as regulatory shifts take shape.

In Pakistan, the recently launched regulatory sandbox by the Pakistan Virtual Assets Regulatory Authority (PVARA) is creating a more structured environment for digital assets.

This sandbox allows innovative companies to test their products, focusing on areas like stablecoins and remittances, which are critical given the country's high remittance inflows.

Conversely, India, despite having a considerable user base, still lacks a dedicated regulatory framework for cryptocurrencies, leaving them in a gray area.

The Indian government’s cautious stance and high tax rates have made the environment less welcoming, even as adoption remains buoyant, with many users turning to offshore platforms.

Issues such as illegal activities have kept the Indian government from formalizing its stance on crypto, raising concerns about future growth in the sector.

Meanwhile, the economic challenges faced by Pakistan drive its push toward crypto adoption, with many viewing it as a practical solution for financial migration.

As both countries navigate these complexities, Pakistan's proactive regulatory stance may provide it with an edge in the evolving landscape.

Moving forward, India may need to consider reforms to catch up with its neighbor’s progressive approach to cryptocurrency.

In summary, the landscape is shifting, and both nations are at a crossroads regarding their future in the crypto economy.