In 2025, the United States was arguably the most prominent cryptocurrency market globally because of the Trump administration’s high-profile moves to regulate digital assets and incorporate them into the mainstream financial system. However, when it comes to actual demand for cryptocurrency, the U.S. is an outlier. Demand for digital assets is growing fastest in emerging markets, with 2 of the top 3 in South Asia and 3 of the top 15 in that region, according to TRM Labs.
What caught our eye in the survey, which covers the first six months of 2025, is how India is No. 1 and Pakistan is No. 3. Together, those two countries account for about 20% of the world’s population. If they eventually fully embrace digital assets, it will have significant implications for global financial flows—especially if American support for crypto results in broader regulatory acceptance globally.
TRM Labs notes that South Asia emerged as the fastest-growing region for crypto adoption from January to July 2025, recording an 80% annual increase in transaction volume that reached US$300 billion.
Despite persistent regulatory ambiguity towards crypto in India, the subcontinent’s demand for digital assets is surging. On the one hand, the success of the UPI payments rail makes the jump to crypto relatively seamless. A strong developer and Web3 ecosystem also foster innovation and local solutions. Additionally, user-friendly online trading platforms and mobile apps like WazirX and CoinDCX have made accessing crypto easy for retail users.
Perhaps most importantly, India is the world’s largest recipient of remittances, and cross-border payments is one of the most promising financial sector segments for stablecoins. A notable percentage of remittances to India are now estimated to occur via stablecoins (perhaps 3-4%), a trend driven by the large Indian diaspora seeking better exchange rates and faster service.
In Pakistan, the digital assets market is evolving differently than in India, with Pakistani regulators taking a more proactive approach. Notably, Pakistan recently secured a seat in global rule-making on cryptocurrencies and blockchain governance after Bilal Bin Saqib, chairman of the Pakistan Virtual Asset Regulatory Authority (PVARA), joined the World Economic Forum’s Steering Committee on Digital Asset Regulations. “This participation strengthens Pakistan’s presence in international policy discussions and signals growing recognition of the country’s role in shaping the global conversation on digital asset governance,” the Pakistani finance ministry said.
In Bangladesh, crypto faces the most challenging market conditions. Indeed, as of 2025, no platforms are licensed to operate legally in the country. While no specific law explicitly bans cryptocurrency ownership itself, Bangladeshi authorities can prosecute related activities under existing legislation if they involve the Foreign Exchange Regulation Act, the Money Laundering Prevention Act, 2012, or the Anti-Terrorism Act.
Despite the official restrictions, a significant number of Bangladeshis use cryptocurrencies, and actual prosecution for trading or transacting with cryptocurrency is uncommon. This activity often occurs through international exchanges and peer-to-peer (P2P) networks using local payment methods like bKash or Nagad.
Between India, Pakistan, and Bangladesh, in 2026 we expect to see the most crypto-related regulatory progress in Pakistan. While the bet might be risky, if Pakistani regulators are right, the Pakistani economy could benefit significantly from regulated digital assets. If the country is seen as crypto-friendly, that could attract more venture capital investment and boost the broader tech startup ecosystem. Indeed, VC giant Andreessen Horowitz recently led a US$12.9 million funding round for Pakistan’s ZAR, a fintech startup that aims to make dollar-backed stablecoins accessible to everyday consumers in Pakistan and emerging markets.
Further, digital assets offer more immediate benefits to Pakistan than India, given the former’s larger percentage of underbanked citizens and more rudimentary digital payments network. Digital assets can probably also help Pakistanis hedge against inflation, which is a persistent problem given the weak Pakistani rupee, dependence on imports, and high trade deficit.