The crypto journey in India and Pakistan has taken very different directions over the years. In India, a major turning point came in February 2022, when the government introduced a 30% tax on crypto profits, followed by a 1% TDS on every transaction from July 2022. This officially allowed crypto trading but placed it under heavy taxation and strict compliance. Since then, India has continued this approach, focusing more on tracking and regulating user activity rather than expanding adoption.

Pakistan, on the other hand, initially took a restrictive stance with banking limitations introduced in 2018. However, the direction began to shift recently. In 2026, Pakistan made a significant move by allowing banks to work with licensed crypto companies under a regulated framework. This marked a major step toward integrating crypto into the financial system, although full public freedom is still limited.

The key difference lies in approach. India allows retail participation but controls the market through taxation and strict rules, which has impacted trading activity. Pakistan is taking a more cautious route, slowly opening the system by first building regulation and institutional support before allowing wider adoption.

India and Pakistan are not banning crypto, but their strategies are clearly different. India focuses on control through taxation, while Pakistan is gradually building a regulated ecosystem. Both paths show that crypto is being recognized, but the speed and structure of adoption vary significantly.