In a bold step towards shaping a digitally empowered financial future, Pakistan’s Ministry of Finance has announced the establishment of the Digital Assets Regulatory Authority, marking a new chapter in the country’s embrace of blockchain, cryptocurrency, and digital finance.
A Future-Ready Framework for Digital Finance
Recognizing the global momentum in digital assets, the Pakistani government is setting up the Pakistan Digital Assets Authority (PDAA)—a centralized body tasked with regulating the digital asset ecosystem. This initiative positions Pakistan alongside leading economies like Singapore, Japan, the UAE, and Hong Kong, all of which have taken proactive steps in digital finance regulation.
The PDAA will serve as a specialised, agile authority overseeing:
- Crypto exchanges
- Custodial services
- Digital wallets
- Tokenized platforms
- Stablecoins
- Decentralized Finance (DeFi) applications
By bringing all these under one regulatory umbrella, the authority aims to ensure compliance with global standards—particularly those set by the Financial Action Task Force (FATF)—while encouraging innovation and financial inclusion.
Tapping into a $25 Billion Informal Crypto Market
With over $25 billion circulating in Pakistan’s informal crypto market, the PDAA is expected to provide legal structure and investor protection, giving both local and international stakeholders clarity and confidence. It will help:
- Legalize and regulate digital trading platforms
- Promote the tokenization of national assets
- Encourage foreign investment in digital ventures
- Enable responsible mining of cryptocurrencies like Bitcoin using surplus energy
This regulation is not just about legalizing crypto but about harnessing its potential for economic growth, transparency, and job creation.
Empowering Innovation and Youth
One of the PDAA’s key goals is to empower Pakistan’s youth and entrepreneurial ecosystem to innovate using blockchain and Web3 technologies. Startups will now be able to:
- Launch token-based business models
- Access global funding
- Participate in the global digital economy
This environment will pave the way for digital finance exports, job creation, and scalable blockchain-based solutions that serve both local and international markets.
High-Level Support from Government and Industry
The announcement was made with strong backing from both government officials and crypto industry leaders.
“Pakistan must regulate not just to catch up, but to lead,” said Muhammad Aurangzeb, Minister for Finance and Chairman of the Pakistan Crypto Council. “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.”
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasized that this move is more than just a crypto reform.
“This is about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation.”
International Collaboration and Confidence
Alongside this initiative, Finance Minister Muhammad Aurangzeb met with Netherlands Ambassador Henny de Vries to discuss Pakistan’s macroeconomic outlook and reform agenda. Both sides expressed interest in strengthening bilateral economic cooperation, especially in digital innovation and private-sector investment.
The ambassador appreciated Pakistan’s reform-driven growth model and its commitment to developing a robust business environment. The continued interest of Dutch companies and the Netherlands’ support for capacity-building in Pakistan further reinforces international confidence in the country’s new digital direction.