Pakistan has stepped up its cryptocurrency digital finance with the formation of a new authority to oversee the country’s blockchain and crypto landscape. The Ministry of Finance has approved the establishment of the Pakistan Digital Assets Authority (PDAA), a regulatory body that will regulate blockchain-based financial infrastructure, according to a report from state-owned broadcaster PTV on May 21.
The PDAA will be responsible for licensing and overseeing crypto exchanges, custodians, wallets, stablecoins, tokenized platforms, and decentralized finance (DeFi) applications. It will also support broader blockchain use cases like tokenizing national funds and government debt. The regulatory body will also be responsible for promoting regulated Bitcoin mining using surplus electricity, and encouraging startups to scale blockchain-based solutions.
Federal Finance Minister Muhammad Aurangzeb said the move is part of a broader vision to position Pakistan as a leader in digital finance. “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.
“This is not just about crypto,” said Bilal Bin Saqib, CEO of the Crypto Council. “It’s about reshaping Pakistan’s financial future through tokenization, digital finance, and Web3 innovation.”
The move signals a sharp policy shift. Just a year ago, former Minister of State for Finance Aisha Ghaus Pasha declared that Pakistan would never legalize cryptocurrencies, citing concerns about money laundering and terrorism financing. But, since then, Pakistan has ranked ninth in Chainalysis’ 2024 Global Crypto Adoption Index, thanks to its strong retail environment.
According to Statista, Pakistan’s crypto market is now on a rapid growth trajectory. The country is projected to have over 27 million crypto users by 2025, out of a population of 247 million. Market revenue is expected to reach $1.6 billion in the same year.
Note that the PDAA’s formation comes from recommendations made by the Cryptocurrency Council, a national advisory body established in March 2024. The council includes high-profile figures such as former Binance CEO Changpeng Zhao, who serves as an adviser. Pakistan will be leveraging CZ’s expertise in developing crypto policies and promoting blockchain technology. CZ’s main role would be to guide the country for them to establish a national crypto council. CZ’s collaboration could also open doors for the country to explore international crypto companies, which might provide a great boost to the country’s economy through foreign investments.
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