Pakistan Launches Digital Assets Authority to Regulate Crypto Market

ISLAMABAD | May 21, 2025 – The Ministry of Finance has announced the creation of the Pakistan Digital Assets Authority (PDAA). This new body will regulate digital assets and support the growth of Pakistan’s digital economy.

According to an official statement, PDAA will supervise blockchain-based financial systems. It will also help Pakistan follow international standards, especially those of the Financial Action Task Force (FATF).

A Bold Step Toward Digital Innovation

Finance Minister Muhammad Aurangzeb said this move is about leading the future, not just catching up. “With PDAA, we’re building a system that protects users, brings in foreign investment, and places Pakistan ahead in financial innovation,” he said.

PDAA will have full authority to manage all areas of digital finance. This includes:

• Licensing and monitoring exchanges

• Regulating digital wallets and custodians

• Overseeing token-based platforms and stablecoins

• Managing decentralized finance (DeFi) applications

All of these will be controlled under one legal structure.

Learning from Global Leaders

The ministry noted that this decision follows the example of countries like UAE, Singapore, Japan, and Hong Kong. These nations have already built similar regulators to support safe and innovative digital finance systems.

Big Plans for Pakistan’s Crypto Economy

The new authority will bring legal clarity to the $25 billion informal crypto market in Pakistan. It will also:

• Allow tokenization of government assets and debt

• Support bitcoin mining using surplus electricity

• Encourage local startups to build on blockchain

• Attract global and local investors

The ministry believes this will empower youth and create new business opportunities in the tech sector.

Background: Crypto Council Already Formed

Earlier in March 2025, Pakistan formed the Pakistan Crypto Council (PCC) to draft a legal framework for crypto trading.

Changpeng Zhao, co-founder and former CEO of Binance, was appointed as a strategic adviser to this council.