Pakistan Establishes Digital Asset Authority to Regulate Cryptocurrency Ecosystem
Islamabad, Pakistan – May 22, 2025: In a significant move to regulate and develop its cryptocurrency landscape, Pakistan has officially created the Pakistan Digital Assets Authority (PDAA). This new regulatory body is tasked with overseeing blockchain-based financial infrastructures, aiming to foster innovation while ensuring consumer protection within the rapidly evolving digital asset market.
Aim of the PDAA
According to a report by the state-owned broadcaster Pakistan Television (PTV), the PDAA will be responsible for licensing and regulating various components of the digital asset ecosystem, including cryptocurrency exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue, emphasized the importance of proactive regulation, stating, “Pakistan must regulate not just to catch up, but to lead in the industry.”
The establishment of the PDAA comes as part of a broader strategy to tokenize national assets and government debt, thereby enabling the monetization of Pakistan’s surplus electricity through Bitcoin mining. The authority is also expected to support startups and encourage the development of blockchain-based solutions on a larger scale.
Recommendations from the Cryptocurrency Council
The formation of the PDAA was recommended by the Cryptocurrency Council of Pakistan, which was launched earlier in March 2025 with notable industry figures, including former Binance CEO Changpeng Zhao, serving as advisers. Bilal Bin Saqib, the CEO of the Council, commented on the implications of the new authority, saying, “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.”
Regulatory Background
Prior to the establishment of the PDAA, Pakistan’s Federal Investigation Agency proposed a framework aimed at regulating digital assets, focusing on issues such as terrorism financing, anti-money laundering measures, and Know Your Customer (KYC) compliance. This response indicated a shift from previous skepticism; in May 2023, the former Minister of State for Finance, Aisha Ghaus Pasha, expressed concerns about the legalization of cryptocurrencies, citing their potential to circumvent existing financial regulations established by the Financial Action Task Force (FATF).
Rising Interest in Cryptocurrency
Despite earlier reservations, interest in cryptocurrency has surged in Pakistan. The country was ranked ninth in Chainalysis’ 2024 crypto adoption index, reflecting significant retail adoption and activity within centralized services. According to data from Statista, Pakistan’s crypto market is projected to grow rapidly, with over 27 million users anticipated by 2025 and an expected revenue of $1.6 billion. This growth indicates an increasing acceptance of digital currencies among the general populace.
As the global landscape of cryptocurrencies and blockchain technologies continues to evolve, Pakistan’s establishment of the PDAA positions it as a proactive player in the international financial arena, with an eye on ensuring robust regulation and fostering economic growth through digital finance solutions.
Conclusion
The creation of the Pakistan Digital Assets Authority marks a progressive step toward integrating cryptocurrency into the formal economy while guarding against potential risks. Pakistan’s strategy aims not only to regulate but also to capitalize on the opportunities presented by blockchain and digital finance in a manner that aligns with global best practices.
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