Pakistan's newly established regulatory body will be responsible for tokenizing national assets and monetizing the country's surplus electricity through Bitcoin (BTC) mining.
The Ministry of Finance has approved the creation of a specialized agency to regulate the country’s blockchain-based financial infrastructure. According to a May 21 report by the state-owned broadcaster PTV, the Pakistan Digital Assets Authority (PDAA) will serve as the regulatory body overseeing licensing, exchanges, custodians, wallets, tokenization platforms, stablecoins, and decentralized finance applications.
Muhammad Aurangzeb, Federal Minister for Finance and Revenue, told the broadcaster, “Pakistan must regulate not just to keep up with the trend but to lead in this industry.” He added, “Through the PDAA, we are creating a future-proof framework that protects consumers, attracts global investment, and positions Pakistan at the forefront of financial innovation.”
The PDAA will also be tasked with tokenizing state assets and government debt, monetizing surplus electricity in Pakistan through regulated Bitcoin mining, and helping startups build scalable blockchain-based solutions.
This new regulatory body is part of the recommendations proposed by the Cryptocurrency Council, an advisory group established on March 14, with former Binance CEO Changpeng Zhao serving as an advisor.
Bilal Bin Saqib, CEO of the Cryptocurrency Council, stated, “This is not just about cryptocurrency; it is about rewriting our financial future, expanding access, and creating new export avenues through tokenization, digital finance, and Web3 innovation.”
As reported by the local newspaper Express Tribune on April 10, the Federal Investigation Agency had previously proposed a regulatory framework for digital assets aimed at addressing terrorism financing, anti-money laundering provisions, and Know Your Customer (KYC) compliance.
Pakistan’s Crypto Market Rises Despite Earlier Skepticism
In May 2023, former Minister of State for Finance and Revenue Aisha Ghaus Pasha stated that Pakistan would never legalize cryptocurrency because digital assets could bypass regulations set by the Financial Action Task Force (FATF)—a supranational organization monitoring financial money laundering.
However, by the following year, Pakistan ranked prominently in Chainalysis’ 2024 Crypto Adoption Index, securing the ninth position, largely due to strong retail adoption and transactions on centralized services.
Meanwhile, online data platform Statista indicates that Pakistan’s crypto market is “experiencing rapid growth,” with the number of crypto users expected to exceed 27 million by 2025, out of a total population of 247 million.
Additionally, revenue from Pakistan’s crypto market is projected to reach $1.6 billion by 2025. According to Statista, the United States remains the leader, with its crypto market expected to generate over $9.4 billion in revenue.
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Frequently Asked Questions
What is the Pakistan Digital Assets Authority (PDAA)?
The PDAA is a newly established regulatory body in Pakistan responsible for overseeing digital assets, including licensing exchanges, custodians, and wallet providers. It also focuses on promoting tokenization and blockchain-based financial innovation in the country.
How will the PDAA impact Bitcoin mining in Pakistan?
The authority aims to regulate Bitcoin mining activities, particularly by utilizing Pakistan’s surplus electricity. This approach seeks to create economic value while ensuring that mining operations comply with national standards.
What are the goals of Pakistan’s crypto regulatory framework?
The framework is designed to protect consumers, attract international investments, and position Pakistan as a leader in fintech innovation. It also addresses compliance issues such as anti-money laundering and terrorism financing.
Why did Pakistan change its stance on cryptocurrency?
Despite initial reservations, Pakistan recognized the growing adoption of digital assets and their potential to drive financial inclusion and economic growth. The shift aims to harness these benefits while mitigating risks through structured oversight.
How does Pakistan rank in global crypto adoption?
According to the 2024 Crypto Adoption Index by Chainalysis, Pakistan ranks ninth worldwide, highlighting significant retail participation and a rapidly expanding digital asset ecosystem.
What role does tokenization play in Pakistan’s strategy?
Tokenization of national assets and government debt is a key initiative under the PDAA. It aims to enhance liquidity, create new investment opportunities, and modernize the country’s financial infrastructure.