Pakistan Establishes Digital Assets Authority to Oversee Crypto, Blockchain

Highlights:

• Pakistan established PDAA to regulate crypto, covering Bitcoin, stablecoins, tokens, wallets, and DeFi apps.
• PDAA aims to create a safe environment and attract global blockchain investment.
• Recent partnerships with global crypto firms signal Pakistan’s move to become a major crypto hub.

On Wednesday, Pakistan’s Ministry of Finance announced the launch of the Pakistan Digital Assets Authority (PDAA) to regulate and grow its $25 billion crypto market. According to a May 21 report from state-owned PTV, PDAA will regulate licensing, crypto exchanges, custodians, wallets, token platforms, stablecoins, and decentralized finance (DeFi) applications.

Muhammad Aurangzeb, the federal minister for finance and revenue, told the broadcaster that Pakistan should regulate digital assets not just to keep up with others, but to become a leader in the industry. PDAA aims to create a safe and investor-friendly environment, making Pakistan more appealing to global blockchain companies.

This step comes as Pakistan’s unofficial cryptocurrency market is valued at about $25 billion, emphasizing the importance of effective oversight and regulation. “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,” Aurangzeb said.

The PDAA will also work on turning national assets and government debt into digital tokens. It will also help the country earn money by using extra electricity for regulated Bitcoin mining and support startups in creating large-scale blockchain-based solutions. With this new system, Pakistan joins countries like Singapore, Japan, and the UAE that have already welcomed blockchain technology. The PDAA will follow FATF-approved rules to build trust with the international community.

Pakistan has launched the Pakistan Digital Assets Authority (PDAA) to regulate its $25 billion informal crypto market and foster a secure digital asset ecosystem. #DigitalAssets #PDAA #Blockchain #Web3 #PakistanEconomy #CryptoRegulation pic.twitter.com/1SCX7Oh6fy

— Startup Pakistan (@PakStartup) May 21, 2025

Worldwide Crypto Partnerships in Progress

Another significant step by Pakistan was signing an agreement with World Liberty Financial (WLF), a crypto firm linked to the Trump family, on March 14. This deal was facilitated by the Pakistan Crypto Council, which has also appointed Binance founder CZ as an adviser. These partnerships show Pakistan’s goal to become an important player in the global cryptocurrency market.

JUST IN: Trump-backed World Liberty Financial (@worldlibertyfi) signs LOI with Pakistan Crypto Council (@cryptocouncilpk) to boost blockchain, DeFi, and stablecoin adoption. Pakistan set to unveil crypto legalization soon.#DigitalPakistan pic.twitter.com/9RfdFbZos6

— TechJuice (@TechJuicePk) April 26, 2025

Previously Bilal Bin Saqib, CEO of Pakistan’s Crypto Council said:

“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.”

Pakistan Moves Toward Regulation Despite Past Concerns

Previously, former Minister of State for Finance and Revenue Dr Aisha Ghaus Pasha stated that Pakistan had no plans to legalize cryptocurrencies. She cited concerns that digital assets could be used to bypass Financial Action Task Force (FATF) anti-money laundering regulations. However, Pakistan ranked ninth in the Chainalysis Global Crypto Adoption Index last year. This was mainly because many people in the country use cryptocurrencies and make transactions through central platforms. 

Reflecting a shift in approach, the Pakistan Crypto Council was established in March 2025 under the Finance Division to provide guidance and develop policies for the regulation and growth of digital assets in the country.

Pakistan’s Federal Investigation Agency (FIA) earlier proposed rules for digital assets to prevent terrorism financing and money laundering. The rules also aim to ensure proper identity checks, according to an April 10 report by The Express Tribune. If everything goes well, Pakistan could soon become the next major crypto hub in South Asia.