The Pakistani government has taken a decisive step toward regulating the country’s blockchain economy with the creation of the Pakistan Digital Assets Authority (PDAA), which will manage crypto licensing, tokenization, and digital innovation.
The Ministry of Finance has officially backed the establishment of the PDAA, a dedicated regulator tasked with managing digital asset frameworks and overseeing key segments of the blockchain ecosystem. The announcement was reported on May 21 by state broadcaster PTV.
The PDAA’s mandate includes licensing and regulation of cryptocurrency exchanges, wallets, custodians, stablecoins, decentralized finance (DeFi) platforms, and tokenized systems. It will also be instrumental in facilitating the tokenization of national assets and sovereign debt, as well as in monetizing surplus electricity through regulated Bitcoin mining.
Pakistan’s vision for blockchain leadership
Federal Minister for Finance and Revenue Muhammad Aurangzeb emphasized the strategic importance of the new authority. “Pakistan must regulate not just to catch up, but to lead,” he said, adding, With the PDAA, we are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation.
The initiative stems from recommendations made by Pakistan’s Cryptocurrency Council, formed earlier this year on March 14. The council includes prominent global advisors, notably former Binance CEO Changpeng Zhao.
Bilal Bin Saqib, CEO of the Crypto Council, reinforced the broader vision of the PDAA: This is not just about crypto it’s about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation.
Balancing innovation with regulation
Prior to this development, Pakistan’s Federal Investigation Agency (FIA) had also proposed a digital asset regulatory framework to address concerns around money laundering, terrorism financing, and Know Your Customer (KYC) compliance. That proposal, revealed in April by The Express Tribune, signaled growing recognition of the need for structured oversight in the sector.
Despite early skepticism, the country’s crypto ecosystem has seen a dramatic rise. Former Minister Aisha Ghaus Pasha declared in 2023 that Pakistan would never legalize digital assets, citing risks of regulatory evasion. However, by 2024, Pakistan climbed to ninth place in Chainalysis’ Global Crypto Adoption Index, buoyed by strong retail engagement and transaction volumes through centralized platforms.
According to data from Statista, Pakistan’s crypto user base is on track to exceed 27 million by 2025, in a country with a population of 247 million. Revenue in the domestic crypto market is projected to hit $1.6 billion in the same year. While the United States remains the market leader with over $9.4 billion in projected crypto revenue, Pakistan’s growth trajectory underscores its emerging role in the global digital economy.
