In a major step toward modernizing its financial landscape, the Government of Pakistan has announced the formation of the Pakistan Digital Assets Authority (PDAA), a new regulatory body dedicated to overseeing the country’s rapidly growing digital asset ecosystem. The initiative, spearheaded by the Ministry of Finance, is a key part of a broader strategy to bring structure, oversight, and legitimacy to Pakistan’s virtual asset market, which is estimated to exceed $25 billion in informal volume.
The decision marks a pivotal moment in Pakistan’s financial evolution, as the country positions itself to both regulate and foster growth within the digital economy. By creating a specialized authority, the government aims to ensure that innovation in digital assets is aligned with international standards, particularly those set by the Financial Action Task Force (FATF), while also promoting economic inclusion and safeguarding consumer interests.
Federal Minister for Finance and Revenue, Muhammad Aurangzeb, who also serves as Chairman of the Policy Coordination Committee (PCC), emphasized the forward-looking nature of this move. “Pakistan must regulate not just to catch up, but to lead. 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 stated.
The PDAA will be tasked with creating a comprehensive regulatory environment covering all facets of the digital asset economy. This includes the licensing and oversight of exchanges, digital wallets, custodians, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications. It is expected to operate under a flexible yet robust framework that can adapt to the evolving nature of blockchain-based technologies.
This strategic shift aligns Pakistan with global financial hubs such as the United Arab Emirates, Singapore, Japan, and Hong Kong, all of which have established independent regulators to manage the complexities and opportunities within the crypto and digital asset sectors. By joining this group of innovation-forward nations, Pakistan signals its intent to become a serious and responsible participant in the international digital finance arena.
Among its major goals, the PDAA is expected to regulate the existing $25 billion crypto market, which currently operates in an informal and unregulated manner. The authority will also facilitate the tokenization of national assets and government debt, providing new avenues for investment and liquidity. Another innovative objective is the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining initiatives.
Furthermore, the PDAA aims to empower Pakistani youth and entrepreneurs by offering a clear legal framework that supports the development of blockchain-based solutions at scale. This approach not only promotes financial literacy and innovation but also creates new job opportunities and export channels in emerging sectors like Web3, digital finance, and tokenized infrastructure.
Commenting on the development, Bilal Bin Saqib, CEO of the Pakistan Crypto Council, stated, “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.”
The establishment of the Pakistan Digital Assets Authority is a signal to both domestic and international stakeholders that the country is committed to a regulated, secure, and inclusive digital financial future. As global interest in blockchain technology and cryptocurrencies continues to grow, Pakistan’s proactive approach may pave the way for increased foreign investment, greater financial transparency, and sustained economic innovation.
