In a landmark move signaling a major policy shift, Pakistan has officially established the Pakistan Digital Asset Authority (PDAA) to regulate the country’s fast-growing cryptocurrency and blockchain sector.
Approved by the Ministry of Finance, the PDAA will function as the central regulatory body responsible for supervising all digital asset-related activities.
Also licensing and oversight of exchanges, custodians, digital wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications.
The decision, announced through a May 21 report by the state-run broadcaster PTV, represents the government’s intent to formally integrate crypto into the national financial infrastructure.
Finance Minister Envisions Pakistan as a Leader in Financial Innovation
Federal Minister for Finance and Revenue, Muhammad Aurangzeb, emphasized the forward-looking vision behind this regulatory initiative.
Speaking to PTV, Aurangzeb stated that “Pakistan must regulate not just to catch up, but to lead,” reflecting the country’s ambition to take a proactive stance in global fintech innovation.
He highlighted that the PDAA is not just a regulatory entity but a strategic platform for economic modernization, tasked with safeguarding consumers, attracting international investment, and managing tokenization of state assets and government debt.
Additionally, Aurangzeb noted that the agency will explore using surplus electricity for Bitcoin mining, integrating crypto into the broader energy and economic frameworks.
Also Read: Pakistan Embraces Digital Assets With New National Crypto Council
Reversal of Previous Stance on Crypto Regulation
This development marks a significant departure from Pakistan’s earlier opposition to cryptocurrency.
In May 2023, former Minister of State for Finance and Revenue, Aisha Ghaus Pasha, had declared that Pakistan would never legalize digital assets due to concerns over financial crimes and non-compliance with Financial Action Task Force (FATF) standards.
However, the rapid rise in crypto adoption has prompted a policy rethink.
According to Chainalysis’ 2024 Global Crypto Adoption Index, Pakistan ranked ninth globally, driven by strong retail engagement and widespread use of centralized platforms.
The shift suggests that the government now sees regulation as a better alternative to prohibition, offering both consumer protection and economic opportunity.
Pakistan’s Booming Crypto Market Poised for Further Expansion
Pakistan’s decision to regulate its crypto sector comes at a time of significant market growth.
Statista data forecasts that the number of crypto users in Pakistan will exceed 27 million by 2025, a substantial figure given the country’s population of 247 million.
Moreover, the local crypto market is expected to generate $1.6 billion in revenue in 2025, reflecting increasing investor interest and market activity.
While the U.S. remains the global leader with over $9.4 billion in crypto revenues, Pakistan’s emerging presence positions it as a rising player in the digital economy.
The establishment of the PDAA is likely to accelerate this trajectory by providing legal clarity and fostering a more secure and transparent investment environment.
Also Read: Pakistan Moves To Legalize Crypto Through Central Bank Act Amendment
Strategic Partnerships Reinforce Pakistan’s Crypto Ambitions
Further highlighting its commitment to becoming a regional crypto hub, Pakistan has launched several key collaborations.
The Trump family’s WLFI initiative has partnered with the Pakistan Crypto Council (PCC) to promote blockchain innovation, focusing on regulatory sandboxes, stablecoins, and tokenization.
At the same time, Binance co-founder Changpeng Zhao (CZ) has been appointed as a strategic advisor to the PCC.
CZ praised Pakistan as “an active crypto market” and emphasized its unique position due to 100% internet access.
His advisory role will focus on crafting regulation, building infrastructure, and promoting education, reinforcing Pakistan’s trajectory toward becoming a Web3 and digital finance leader in the region.
These partnerships underscore a unified public-private effort to fully integrate blockchain into the national economy.
Also Read: Pakistan Prepares To Legalize Cryptocurrency Trading to Boost Foreign Investment