New regulatory body aims to formalize $25 billion informal crypto market, attract global investment, and harness blockchain innovation for Pakistan’s economic growth
Key Takeaways:
• Pakistan establishes the Pakistan Digital Assets Authority (PDAA) to regulate and formalize the digital asset ecosystem.
• PDAA will regulate crypto exchanges, wallets, tokenization platforms, and DeFi under a FATF-compliant framework.
• The initiative aims to harness surplus electricity for Bitcoin mining, attract global investment, and empower local blockchain innovation.
Islamabad, Pakistan – In a significant move to regulate and promote the digital asset ecosystem, Pakistan’s Ministry of Finance announced the creation of the Pakistan Digital Assets Authority (PDAA) on Wednesday. This specialized regulatory body will oversee the licensing, compliance, and innovation of blockchain-based financial infrastructure, marking a major step toward formalizing the country’s virtual asset economy.
The PDAA is tasked with regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications under a unified framework. This initiative aligns Pakistan with global leaders such as the UAE, Japan, Singapore, and Hong Kong, which have already established similar regulators to balance innovation with compliance to international financial standards, including FATF guidelines.
Finance Minister Muhammad Aurangzeb, who also chairs the Pakistan Crypto Council (PCC), emphasized that the establishment of PDAA is not just about catching up but positioning Pakistan as a leader in financial innovation. “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,” he said.
The PDAA is expected to regulate an informal crypto market estimated at over $25 billion, provide legal clarity to investors, and enable the tokenization of national assets and government debt. Furthermore, it aims to monetize Pakistan’s surplus electricity by promoting regulated Bitcoin mining operations, which could generate new revenue streams and empower local startups and youth to develop blockchain-based solutions at scale.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, highlighted the broader vision: “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.”
This development comes at a critical time as Pakistan seeks to modernize its financial sector, attract foreign investment, and leverage emerging technologies to drive economic growth and financial inclusion.
