Crypto Cold War: Pakistan, Bhutan and America made a big move, India is still confused!
A new war has begun in the digital world – Crypto Cold War. While many countries of the world are looking at cryptocurrency not just as a financial experiment but as a geopolitical and strategic weapon, India is still undecided and unclear about its policy. From Pakistan to Bhutan and America, everyone is moving forward with their crypto strategy aggressively, but India is still entangled in regulatory confusion.
Pakistan’s Crypto Game: From Investment to Influence
According to ET’s report, Pakistan has made crypto a part of its national strategy. In July 2025, President Asif Ali Zardari signed an ordinance creating the Pakistan Virtual Asset Regulatory Authority (PVARA). This authority will regulate crypto exchanges and platforms. It also names Changpeng Zhao, the founder of Binance, who is now an advisor to the Pakistan Crypto Council.
The most interesting thing is that Pakistan’s crypto diplomacy is happening with Trump-linked firms like World Liberty Financial (WLF). This is happening at a time when there should have been international pressure on Pakistan during Operation Sindoor, but the US response was quite soft. Is Pakistan buying strategic influence through crypto?
Anirudh Suri, from India Internet Fund, says, “Crypto has now become a strategic financial channel. Pakistan can use it as a new route for terror financing, which monitoring agencies like FATF and IMF may fail.”
India’s Stance: Still waiting for clarity
While the whole world is adopting crypto, India is still in a policy vacuum. The Supreme Court has asked the Center why no clear framework has been made on crypto till now? RBI is still against crypto – they say it is a threat to monetary stability. SEBI wants multiple agencies to come together and regulate crypto.
Currently, India attracts 30% tax on crypto profits and 1% TDS on large transactions. Exchanges have to register with FIU-IND. But the national crypto policy discussion paper due in June has not been released yet.
According to recent reports, misuse of private wallets and privacy coins is increasing in Jammu & Kashmir. FIU has given instructions to closely monitor crypto transactions coming from J&K.
Bhutan’s Bitcoin Gamble: Small country, big thinking
While Pakistan is using crypto for diplomacy and influence, Bhutan has used it as a tool for economic growth. According to ET, Bhutan has mined bitcoin worth $1.3 billion – which is almost 40% of its GDP. This mining is done through surplus hydropower. Today Bhutan’s public spending, tourism projects, and even salary hikes of government employees are funded through bitcoin.
But this success story also comes with a risk. Bhutan has made heavy use of Chinese bitcoin mining gear, which could become a strategic concern for India. But along with this, Indian firms like Adani Group are also interested in setting up data centers in Bhutan.
America and Trump’s Crypto Strategy
Crypto has become a political and economic strategy in the US too. A bill named GENIUS Act is ready for vote in Congress. This bill will regulate stablecoins like USD1, which has been launched by Trump’s World Liberty Financial.
In 2024, Trump earned $57.4 million from this coin alone. According to ET, an Abu Dhabi-based fund has invested $2 billion in this stablecoin. This coin is also being promoted on Binance. Experts say that if it remains unchecked, many countries can misuse it and buy influence with America – like Pakistan is doing.
Warning Bell for India: If not now, then when?
Experts say that if India does not formulate a quick and clear policy on crypto, we will be left behind in this new race of digital finance. Ananya Kumar (Atlantic Council) says, “Crypto does not respect borders – it is a global issue.”
Jaideep Reddy, from Trilegal, says that crypto is not clearly defined within India’s securities, tax and foreign exchange laws. This ambiguity has become a cause of confusion for businesses and investors.
ET’s report also points out that there is a risk of capital flight through dollar-backed stablecoins, which needs to be regulated without delay.
Conclusion: India will have to formulate its own crypto policy
The Crypto Cold War has begun, and every country is clarifying its positioning. Pakistan and Bhutan are moving ahead with aggressive strategies, America is fully utilizing it for its political and economic gain. In such a situation, India needs a robust crypto policy with clarity, transparency and vision.