Islamabad, May 13, 2025 — In a major step toward embracing the digital economy, Pakistan’s Ministry of Finance has announced plans to establish the Pakistan Digital Assets Authority (PDAA)—a dedicated regulatory body tasked with overseeing the country’s expanding digital asset ecosystem. This initiative signals the government’s commitment to integrating blockchain technology and cryptocurrency into the formal financial sector under a robust legal framework.
The new authority aims to bring Pakistan’s digital financial activities in line with international standards, particularly those set by the Financial Action Task Force (FATF). The PDAA will regulate a broad range of digital asset operations, including cryptocurrency exchanges, blockchain platforms, and decentralized finance (DeFi) systems. Its core focus will be on enhancing transparency, security, and investor protection in this rapidly evolving space.
A Vision for Financial Innovation
Federal Minister for Finance, Muhammad Aurangzeb, highlighted the government’s broader vision of positioning Pakistan as a regional leader in financial technology. He said that the PDAA will not only ensure regulatory compliance and consumer protection but also foster a climate of innovation and growth within the digital asset sector.
“The PDAA will be pivotal in building a safe, inclusive, and forward-looking financial ecosystem that embraces the opportunities of digital transformation while managing its risks,” Aurangzeb stated.
Formalizing a $25 Billion Informal Crypto Market
Pakistan’s informal crypto market, currently estimated at around $25 billion, has operated largely without oversight, exposing the economy to significant risks such as money laundering, fraud, and financial instability. The introduction of the PDAA is expected to help formalize and regulate this market, integrating it into the national financial framework.
This shift is expected to improve investor confidence, encourage responsible use of digital assets, and enhance the country’s international credibility in financial governance.
Enabling Asset Tokenization and Startup Growth
In addition to regulating cryptocurrencies, the PDAA will facilitate the tokenization of national assets, allowing both physical and intangible public assets to be digitally represented, traded, and managed more efficiently. This move is anticipated to unlock new investment opportunities, improve asset liquidity, and strengthen transparency in public financial management.
The initiative is also tailored to empower local startups and fintech innovators. By providing a clear regulatory environment, the government hopes to attract new entrepreneurs and investors, stimulate job creation, and accelerate economic development through digital finance.
Toward a Modernized Financial System
The creation of the Pakistan Digital Assets Authority marks a strategic milestone in the country’s ongoing efforts to modernize its financial system and adapt to emerging global trends in digital technology. It reflects Pakistan’s readiness to embrace the transformative potential of blockchain and digital assets, while ensuring that such progress is responsibly guided and regulated.
As global demand for secure, innovative digital financial solutions grows, Pakistan’s forward-thinking approach could position it as a hub for digital finance in South Asia.