Pakistan has taken a decisive leap into the digital finance era. The country’s Ministry of Finance has given the green light to the establishment of the Pakistan Digital Assets Authority (PDAA), a fresh regulatory body poised to oversee the burgeoning realm of blockchain-based financial infrastructure. This move, announced on May 21 by the state-owned broadcaster PTV, marks a significant stride towards positioning Pakistan as a formidable player in the global digital finance landscape.
A New Era of Regulation
The PDAA’s mandate is expansive, covering everything from licensing to regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. Muhammad Aurangzeb, the federal minister for finance and revenue, emphasized the importance of this initiative, stating, “Pakistan must regulate not just to catch up, but to lead.” His vision is clear: a future-ready framework that not only safeguards consumers but also attracts global investment and positions Pakistan at the cutting edge of financial innovation. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
But that’s not all. The PDAA’s role extends to tokenizing national assets and government debt, capitalizing on Pakistan’s surplus electricity through regulated Bitcoin mining, and nurturing startups to develop scalable blockchain solutions. This ambitious agenda reflects a broader strategic shift towards embracing the digital economy.
Bridging Skepticism and Opportunity
This development is a stark contrast to the sentiments of May 2023, when then-Minister of State for Finance and Revenue, Aisha Ghaus Pasha, declared that Pakistan would never legalize cryptocurrencies due to their potential to skirt regulations set by the Financial Action Task Force. However, the tides have turned. Pakistan ranked ninth in Chainalysis’ 2024 crypto adoption index, driven by robust retail adoption and transactions through centralized services.
Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, described the PDAA’s creation as a transformative moment. “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,” he remarked. His words underscore the potential for digital assets to redefine the financial landscape in Pakistan.
Market Dynamics and Future Prospects
Pakistan’s crypto market is on a rapid ascent. According to Statista, the number of crypto users in the country is expected to exceed 27 million by 2025, a significant figure considering the nation’s 247 million population. Revenue from the crypto market is projected to hit $1.6 billion in the same year. While this pales in comparison to the United States’ estimated $9.4 billion, it signals a robust growth trajectory for Pakistan. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
The establishment of the PDAA is also part of a broader effort to address security concerns. The Federal Investigation Agency had previously proposed a framework to tackle issues like terrorism financing and money laundering, with a focus on Know Your Customer protocols. These measures are crucial for fostering a secure environment that encourages both domestic and international stakeholders to engage with Pakistan’s digital finance ecosystem.
Looking Ahead
The creation of the PDAA raises intriguing questions about Pakistan’s future in the crypto world. Will the new regulatory framework spur innovation and attract the investment needed to transform Pakistan into a digital finance hub? Or will challenges in implementation slow down progress? As the country navigates this evolving landscape, the answers will become clearer.
What remains indisputable is that Pakistan is now firmly on the path to a digital future. The PDAA’s establishment signals a commitment to harnessing the power of blockchain technology, not just as a tool for economic growth, but as a means to redefine the nation’s financial infrastructure. In an era where digital assets are reshaping economies worldwide, Pakistan’s proactive stance could well be its ticket to a leading role in the global financial arena.
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This article is based on: Pakistan creates Digital Asset Authority to regulate crypto
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
