Pakistan sets up authority to regulate virtual asset economy

KARACHI: In a landmark move to embrace the future of finance, the Ministry of Finance has announced a comprehensive strategy to regulate digital assets and accelerate the growth of Pakistan’s virtual asset economy.

The government has endorsed the creation of a dedicated body — the Pakistan Digital Assets Authority (PDAA) — to oversee blockchain-based financial infrastructure.

The initiative aims to promote FATF-compliant innovation, economic inclusion, and the responsible adoption of digital assets.

“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,” said Finance Minister and Chairman of the Policy Coordination Committee Muhammad Aurangzeb.

Global Alignment, National Impact

The PDAA will serve as a specialized regulatory body with a clear mandate: to oversee licensing, compliance, and innovation within the digital asset ecosystem. It will regulate exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralised finance (DeFi) applications — all under a single, agile framework.

This strategic move brings Pakistan in line with other forward-thinking economies — including the UAE, Japan, Singapore, and Hong Kong — that have established digital asset regulators to foster innovation while ensuring compliance with global financial standards.

The PDAA is expected to regulate a $25 billion-plus informal crypto market; enable tokenisation of national assets and government debt; provide legal clarity to global and local investors; facilitate the monetisation of Pakistan’s surplus electricity through regulated Bitcoin mining and empower youth and startups to build blockchain-based solutions at scale

With the proposed PDAA, Pakistan is signaling its intent to become a competitive player in the global digital economy — inviting responsible innovation and building trust with investors, entrepreneurs, and international partners.

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“This is not just about crypto — it’s about rewriting our financial future, expanding access, and creating new export channels through tokenisation, digital finance, and Web3 innovation,” said Bilal Bin Saqib, CEO of the Pakistan Crypto Council.