Pakistan's Ministry of Finance has officially created the Pakistan Digital Assets Authority (PDAA) to regulate blockchain-based financial activities within the country. Chaired by Finance Minister Muhammad Aurangzeb, the PDAA will oversee licensing and regulation of cryptocurrency exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications.
The authority aims to build a future-ready framework that not only safeguards consumer interests but also invites global investment and places Pakistan at the forefront of financial innovation. It also plans to tokenize national assets and government debt, facilitate monetization of surplus electricity via regulated Bitcoin mining, and support blockchain-based startups to scale their solutions.
This initiative follows recommendations from Pakistan's Cryptocurrency Council, which has industry figures such as former Binance CEO Changpeng Zhao as an adviser. The PDAA’s regulatory approach intends to align with global standards seen in jurisdictions like the UAE, Japan, Singapore, and Hong Kong.
Previously, Pakistani authorities had concerns related to money laundering and terrorism financing risks associated with digital assets. However, rapid growth in retail crypto adoption has pushed the country to rank 9th globally in Chainalysis’ 2024 Crypto Adoption Index. Estimates project Pakistan’s crypto user base to exceed 27 million by 2025, with expected market revenue reaching $1.6 billion.
The PDAA’s establishment is seen as a major step for Pakistan to lead rather than lag in crypto regulation, potentially increasing market confidence and attracting institutional and foreign investments. By promoting compliance to anti-money laundering standards and consumer protections, Pakistan is aiming to create a well-regulated digital finance ecosystem that can drive economic expansion and innovation.