Pakistan to Establish Digital Assets Authority to Accelerate the Virtual Asset Economy

In a historic step towards embracing the future of digital finance, the Government of Pakistan has announced plans to establish the Pakistan Digital Assets Authority (PDAA), a dedicated regulatory body that will oversee the country’s burgeoning virtual asset landscape. The decision marks a significant shift in the nation’s stance on digital currencies, blockchain infrastructure, and decentralized finance (DeFi), positioning Pakistan among progressive economies adopting regulatory clarity for Web3 innovation.

The initiative, unveiled by the Ministry of Finance, aims to provide a comprehensive and FATF-compliant framework for the governance of digital assets such as cryptocurrencies, tokenized assets, stablecoins, and blockchain-based platforms. It is designed to unlock economic opportunities, attract foreign investment, and enhance consumer protection.

Pakistan must regulate not just to catch up — but to lead. 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.”

–Muhammad Aurangzeb, Federal Minister for Finance and Revenue and Chairman of the Policy Coordination Committee (PCC)

A Strategic Leap Toward Global Financial Integration

The PDAA will operate as an independent regulatory authority with sweeping oversight powers. It will be responsible for licensing, compliance, risk monitoring, and the facilitation of innovation across the digital asset space. The body is expected to regulate entities including:

• Digital asset exchanges
• Wallet providers and custodians
• Tokenized asset platforms
• Stablecoin issuers
• Decentralized finance (DeFi) projects
• Bitcoin and other cryptocurrency mining operations

This decision places Pakistan in alignment with leading digital finance hubs such as the United Arab Emirates, Singapore, Japan, and Hong Kong, where digital asset regulators have already transformed local markets into globally trusted investment destinations.

Key Objectives of the Pakistan Digital Assets Authority

According to initial strategy documents and industry experts, the PDAA is expected to deliver on several national priorities:

• Regulate Pakistan’s estimated $25B+ informal crypto market, bringing transparency and accountability to a currently opaque sector.
• Tokenize national assets and sovereign debt instruments, opening up new financing channels and public investment options.
• Attract both local and international investors by offering regulatory clarity and consumer protection.
• Create a framework for legal and sustainable Bitcoin mining, potentially leveraging Pakistan’s excess electricity capacity.
• Support youth-driven innovation by enabling blockchain-based startups to scale legally and securely.

“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.”

Bilal Bin Saqib, CEO of the Pakistan Crypto Council.

A Long-Awaited Move

The lack of regulation has long been a barrier to crypto adoption and investment in Pakistan. Despite significant user interest, especially among the youth and freelancers, crypto trading remained in a legal grey zone, with banks issuing warnings and the central bank maintaining a cautious stance.

However, with pressure mounting from global watchdogs like the Financial Action Task Force (FATF) and increased interest in blockchain-based economic tools, the government has acknowledged the need for structured oversight instead of blanket bans.

The move to establish PDAA indicates that Pakistan is ready to pivot from policy hesitation to strategic enablement.

The PDAA’s legal and operational structure is expected to be formalized in the coming months. Consultations with global experts, technology providers, and local fintech innovators are already underway. The authority is likely to operate under the Ministry of Finance’s oversight, with inter-agency collaboration including the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and the Pakistan Telecommunication Authority (PTA).

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