Pakistan’s Ministry of Finance has reportedly endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country.
The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing, regulate exchanges, custodians, wallets, tokenized platforms, stablecoins and decentralized finance applications, according to a May 21 report from the state-owned broadcaster, PTV.
Muhammad Aurangzeb, federal minister for finance and revenue, told the broadcaster, “Pakistan must regulate not just to catch up, but to lead” in the industry.
“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 will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.
The new regulatory body was part of a recommendation from the Pakistan advisory body, the Cryptocurrency Council, which was launched on March 14 and has former Binance CEO Changpeng Zhao as an adviser.
“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,” said Bilal Bin Saqib, CEO of Pakistan’s Crypto Council.
Pakistan’s Federal Investigation Agency previously proposed a regulatory framework for digital assets designed to address terrorism financing, money laundering provisions, and Know Your Customer concerns, according to am April 10 report from local newspaper, The Express Tribune.
Pakistan crypto market rises despite early skepticism
In May 2023, former Minister of State for Finance and Revenue Aisha Ghaus Pasha said that Pakistan would never legalize cryptocurrencies due to the potential for digital assets to circumvent regulations created by the Financial Action Task Force, the supranational organization that polices finance for money laundering.
Related: Pakistan Crypto Council proposes using excess energy for BTC mining
However, the following year, Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.
Meanwhile, the online data platform Statista shows Pakistan’s crypto market is “experiencing rapid growth” and estimates the number of crypto users is expected to amount to over 27 million by 2025, out of a population of 247 million.
At the same time, revenue in the Pakistan crypto market is projected to reach $1.6 billion in 2025. The United States still leads the pack, with its crypto market generating an estimated revenue of over $9.4 billion, according to Statista data.
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