Islamabad: Pakistani government has announced the establishment of the Pakistan Digital Assets Authority (PDAA), a move aimed at regulating and promoting the country’s digital asset sector in line with international standards set by the Financial Action Task Force (FATF).
According to a statement issued by the Ministry of Finance on Wednesday, the creation of the PDAA is part of a broader strategy to bring structure and compliance to the virtual asset ecosystem while encouraging innovation and investment.
The initiative follows recommendations by the Pakistan Cryptocurrency Council (PCC) and is intended to foster a secure and inclusive blockchain-based financial infrastructure.
Finance Minister Muhammad Aurangzeb, who also chairs the PCC, emphasized that the new authority would establish a robust, future-oriented framework to protect consumers, attract global investment, and position Pakistan as a leader in financial innovation.
The PDAA will function as a specialized regulatory body with a clear mandate to oversee all aspects of the digital asset space, including licensing, compliance, and the promotion of innovation.
Its regulatory scope will cover cryptocurrency exchanges, digital wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications. The goal is to streamline oversight under a single, agile authority.
This step aligns Pakistan with other progressive economies such as Singapore, the UAE, Japan, and Hong Kong, all of which have implemented similar frameworks to support financial technology growth while ensuring adherence to international regulatory standards.
The PDAA is expected to bring regulation to Pakistan’s vast informal crypto market, estimated at over $25 billion.
It also aims to support the tokenization of national assets and government debt, offer legal certainty for local and foreign investors, and help monetize surplus electricity through regulated Bitcoin mining.
Moreover, the establishment of the PDAA is seen as a way to empower young entrepreneurs and startups to develop scalable blockchain solutions.
It underscores Pakistan’s ambition to actively participate in the global digital economy, signaling openness to responsible innovation and partnership with international stakeholders.
Commenting on the development, Bilal Bin Saqib, CEO of the Pakistan Crypto Council, noted that the initiative is not solely about cryptocurrencies but represents a broader transformation of the country’s financial system.
He highlighted the potential for expanding financial access, enabling new export opportunities, and embracing innovations across digital finance and Web3 technologies.
