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Pakistan to regulate $25 billion crypto market via dedicated authority

Pakistan to regulate $25 billion crypto market via dedicated authority

Web Desk
May 21, 2025

ISLAMABAD: Pakistan has unveiled plans to regulate its growing digital asset sector, announcing the creation of a dedicated authority to oversee the use of blockchain technologies and virtual assets.

The Ministry of Finance on Wednesday said it would establish the Pakistan Digital Assets Authority (PDAA), a new regulatory body that will supervise exchanges, wallets, tokenised platforms, stablecoins, and decentralised finance (DeFi) applications. The authority will also be responsible for issuing licences and ensuring compliance with international standards.

The move is part of broader effort to bring Pakistan’s informal crypto market — estimated at over $25 billion — under official oversight, while aligning with global financial rules, including those of the Financial Action Task Force (FATF).

Finance Minister Muhammad Aurangzeb, who also chairs the Pakistan Crypto Council, said the initiative is intended to position Pakistan not just as a follower, but as a leader in the global digital economy.

“With the PDAA, we’re building a framework that safeguards consumers, attracts international investment, and prepares Pakistan for the next wave of financial innovation,” he said.

Officials said the PDAA will aim to formalise the digital asset sector and provide legal clarity to both local and foreign investors. It will also support the tokenisation of government assets and public debt, potentially opening new financing channels.

The government is also exploring the use of digital finance tools to monetise surplus electricity through regulated Bitcoin mining operations, and to encourage startups to develop blockchain-based solutions.

According to Business Recorder, the policy aligns Pakistan with countries such as Singapore, Japan, the UAE, and Hong Kong, which have already rolled out frameworks for digital asset regulation.

“This goes beyond cryptocurrencies,” said Bilal Bin Saqib, CEO of the Pakistan Crypto Council. “It’s about redesigning the financial system, broadening access, and building exportable Web3 technologies.”