Pakistani lawmakers have approved the establishment of the Pakistan Digital Assets Authority (PDAA), a regulatory body designed to oversee the country’s growing blockchain-based financial infrastructure and digital asset ecosystem. The Ministry of Finance has authorized this move to ensure proper licensing, compliance, and innovation within the digital asset sector.

What is the Pakistan Digital Assets Authority?

The PDAA will act as a supervisory entity for various blockchain and cryptocurrency-related operations. Its responsibilities include monitoring crypto exchanges, custodians, digital wallets, tokenization services, stablecoins, and decentralized finance (DeFi) protocols. This initiative is part of Pakistan’s broader strategy to embrace financial innovation and establish itself as a leader in the digital economy.

Key Objectives of the PDAA

Finance Minister Muhammad Aurangzeb highlighted that the PDAA aims to regulate the digital finance sector proactively. He emphasized that Pakistan must “regulate not just to catch up — but to lead.” The authority’s primary goals include:

  • Consumer Protection: Ensuring a secure and transparent environment for digital asset users.
  • Global Investment Attraction: Creating favorable conditions for international investors to participate in Pakistan’s digital economy.
  • Future-Ready Framework: Developing a robust regulatory structure to support innovation and growth in digital finance.

Tokenization and Blockchain-Based Solutions

Beyond regulatory oversight, the PDAA will play a significant role in advancing blockchain applications within Pakistan. Key initiatives include:

  • Tokenizing National Assets: Utilizing blockchain technology to digitize government assets and debt instruments.
  • Bitcoin Mining: Monetizing surplus electricity to facilitate cryptocurrency mining activities.
  • Startup Enablement: Empowering local startups to scale blockchain-based solutions.

Shifting Stance on Cryptocurrencies

The establishment of the PDAA reflects a significant policy shift for Pakistan. Just over two years ago, former officials expressed strong opposition to legalizing cryptocurrencies. The State Bank of Pakistan (SBP) had long maintained a cautious approach, warning against cryptocurrency use and declaring assets like Bitcoin as illegal tender.

However, the government began to soften its stance in late 2024, proposing amendments to the SBP Act to allow the central bank to issue digital currency. This marked the beginning of a gradual embrace of blockchain technology and digital assets.

Powering the Crypto Industry

In March of this year, Pakistan’s Power Division initiated consultations with stakeholders to explore competitive electricity pricing models for emerging industries, including cryptocurrency. Discussions have also been held to evaluate how global crypto mining firms could utilize the country’s surplus electricity, signaling a proactive approach to integrating blockchain into the energy sector.

Formation of the Pakistan Crypto Council

In early 2025, the Pakistan Crypto Council (PCC) was established under the Finance Division to provide guidance on digital asset policy. Bilal Bin Saqib, the PCC’s CEO, stated that Pakistan has moved beyond “sitting on the sidelines” and is now actively working to attract international investment. He highlighted the country’s “low-cost high-growth market” and a “Web3-native workforce” as key advantages.

Global Recognition and Strategic Partnerships

In a move to strengthen Pakistan’s position in the global crypto market, Binance founder Changpeng Zhao was appointed as a Strategic Advisor. This followed high-level meetings in Islamabad with key government officials, including the Prime Minister and central bank representatives.

Rapid Growth in Crypto Adoption

Pakistan currently ranks among the top 10 countries globally in cryptocurrency adoption, with an estimated 15 to 20 million users actively engaging in digital assets. This growth underscores the country’s potential as a significant player in the global blockchain ecosystem.

The formation of the Pakistan Digital Assets Authority marks a pivotal moment in the country’s journey toward embracing digital finance and blockchain technology. With a clear regulatory framework and a focus on innovation, Pakistan is well-positioned to become a hub for crypto and blockchain development.

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