When Governments Get Serious: Blockchain & Web3 Hit the Policy Table

Blockchain isn’t just about crypto anymore. In 2025, governments are starting to get involved—and that’s not necessarily a bad thing. In fact, it could be a sign that Web3 technology is maturing.

Over the past few years, Web3 and blockchain were often seen as a wild frontier full of speculation. But now, the tone is shifting. Some governments are taking concrete steps: from drafting innovation-friendly regulations to planning national Bitcoin reserves. Yes, governments are actually buying Bitcoin.

Let’s break it down—because this shift matters to developers, investors, and Web3 writers.

India: From Buzzwords to Real Action in Telangana

Who says blockchain is just a technocratic buzzword?

In Telangana, a state in India, the local government is starting to implement blockchain for public services. They’re even exploring blockchain-based remote voting. While not a new idea, this is one of the first times a government is taking it seriously.

According to The Times of India, Telangana is actively designing an ecosystem for large-scale adoption of emerging technologies like blockchain, AI, and IoT. On the regulatory side, they’re not staying idle either. This proactive approach positions Telangana as a Web3-friendly zone—rather than one that resists innovation.

Source: The Times of India (2025)

Pakistan: Bitcoin as a National Reserve?

Unexpectedly, Pakistan is becoming a pioneer in national crypto strategy.

On May 28, 2025, Pakistan surprised the Web3 world by announcing plans to establish a strategic Bitcoin reserve—similar to how nations hold gold or USD.

Behind this bold move is Bilal Bin Saqib, appointed as Special Advisor for Blockchain and Crypto. Alongside the Bitcoin reserve plan, he is also overseeing the creation of a regulatory framework for Virtual Asset Service Providers (VASP). That means crypto exchanges and wallets in Pakistan will soon be legally structured and regulated.

This move is seen as an effort by Pakistan to catch up in the digital finance sector—while laying a legal foundation that allows Web3 to grow responsibly.

Source: Wikipedia - Bilal Bin Saqib

European Union: MiCA and Its Limitations

Regulations exist, but the gray zones remain.

The EU is one of the first regions to pass comprehensive crypto regulation with MiCA (Markets in Crypto-Assets). This framework covers stablecoins, crypto service providers, and consumer protections.

However, MiCA still has major blind spots: it doesn’t yet cover DeFi, NFTs, or DAOs. This means that platforms like Aave or Uniswap, NFT collections, and decentralized communities remain largely unregulated.

Source: CincoDias - MiCA as a reference, not a single model

Meanwhile, the United States remains undecided. Legal debates and lawsuits—like SEC vs. Ripple and the prolonged Ethereum ETF discussions—continue to create regulatory uncertainty.

Analysis: Governments Are Learning, But Still Awkward

Overall, there are three distinct government approaches to blockchain in 2025:

Approach | Countries | Characteristics
Aggressive & Bold | India (Telangana), Pakistan | Quick to respond, open to experimentation—even buying Bitcoin
Regulatory & Cautious | European Union | Legal framework (MiCA), but limited and bureaucratic
Slow & Adversarial | United States | Heavy litigation, lack of national consensus

An interesting trend: countries outside the Western axis (especially South Asia) are becoming more progressive and experimental.

Closing Thoughts: Time to Position Yourself

As governments step into blockchain and Web3, this space is no longer just the domain of a few developers or underground communities. It’s a signal that this technology is being taken seriously—as part of the digital economy’s future.

Bold moves by countries like India and Pakistan might set the stage for others to follow. Europe’s regulatory clarity is promising, though still incomplete.

If you’re active in Web3, now is the time to:

Understand your country’s regulations

Track institutional market shifts

Most importantly: Keep building responsible and relevant projects

Because Web3 is no longer lawless—it’s shaping a new legal landscape.