Pakistan advances digital asset regulation with PDAA

May 21, 2025 (MLN): In a landmark move to embrace the future of finance, the Ministry of Finance has unveiled a comprehensive strategy to regulate digital assets and accelerate the growth of Pakistan’s virtual asset economy through the creation of the Pakistan Digital Assets Authority (PDAA).

This dedicated regulatory body will oversee blockchain-based financial infrastructure, ensuring FATF-compliant innovation, economic inclusion, and responsible adoption of digital assets.

Federal Minister for Finance and Revenue, Muhammad Aurangzeb, emphasized that Pakistan aims not only to catch up but to lead in financial innovation by creating a future-ready framework that protects consumers and attracts global investment.

The PDAA will regulate exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications under a unified and agile framework, as per the press release issued today.

This move aligns Pakistan with other progressive economies such as the UAE, Japan, Singapore, and Hong Kong, which have similar regulators to foster innovation while maintaining global financial compliance.

The PDAA is tasked with regulating an informal crypto market valued at over $25 billion, enabling the tokenization of national assets and government debt, and providing legal clarity to investors.

It will also facilitate the monetization of surplus electricity through regulated Bitcoin mining and empower youth and startups to develop blockchain-based solutions.

This initiative signals Pakistan’s intent to become a competitive player in the global digital economy by encouraging responsible innovation and building trust with investors, entrepreneurs, and international partners.

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, highlighted that this initiative goes beyond cryptocurrency; it aims to transform Pakistan’s financial future by expanding access and creating new export opportunities through tokenization, digital finance, and Web3 innovation.

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