In a bold move to accelerate its participation in the global digital economy, the Ministry of Finance of Pakistan has officially announced the establishment of the Pakistan Digital Assets Authority (PDAA). This newly formed body will be responsible for regulating and advancing the country’s virtual asset ecosystem, with a vision to promote innovation while ensuring compliance with international financial standards.
The announcement came on May 21, 2025, when the Finance Ministry declared that the government has formally endorsed the creation of a centralized authority to oversee blockchain-based financial infrastructure. The PDAA will serve as a comprehensive regulatory body tasked with overseeing the licensing, compliance, and innovation in the digital asset space. It will regulate all key components of the ecosystem, including exchanges, wallets, custodians, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications.
The Ministry emphasized that the aim of this initiative is to foster FATF-compliant innovation and financial inclusion while enabling responsible adoption of emerging technologies. By bringing these sectors under a unified regulatory umbrella, the PDAA is expected to reduce systemic risk, enhance transparency, and promote sustainable growth in the digital asset industry.
The move aligns Pakistan with other progressive economies such as the United Arab Emirates, Japan, Singapore, and Hong Kong — all of which have implemented proactive digital asset frameworks. These countries have successfully attracted global capital, nurtured local innovation, and provided regulatory certainty to both investors and innovators.
Pakistan’s informal cryptocurrency market is estimated to be worth more than $25 billion, and the PDAA is expected to introduce the oversight needed to formalize and grow this sector responsibly. In addition to regulation, the authority will facilitate the tokenization of national assets, provide a legal framework for government debt on blockchain, and explore innovative use cases such as monetizing surplus electricity through regulated Bitcoin mining operations.
“This is not just a regulatory body; it’s a gateway to transforming our financial infrastructure,” said Mr Muhammad Aurangzeb, Minister for Finance and Revenue and Chairman of the Pakistan Crypto Council. “With the PDAA, we are creating a future-ready framework that protects consumers, attracts global investment, and puts Pakistan at the forefront of financial innovation.”
Also speaking on the development, Mr Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasized the broader vision behind the PDAA. “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.”
The PDAA’s establishment marks a pivotal moment for Pakistan’s entry into the regulated digital finance space. It represents a strategic shift from reactive regulation to proactive economic policy-making that supports startups, empowers youth, and builds global trust in Pakistan’s financial infrastructure.
As the framework for PDAA begins to take shape, Pakistan positions itself to become a regional leader in blockchain and virtual asset innovation — a signal to the world that the country is ready to embrace the digital financial future.