In a remarkable turn of events that highlights Pakistan’s evolving relationship with digital finance, the country has formally stepped into the world of blockchain regulation. The government has approved the creation of a dedicated body — the Pakistan Digital Assets Authority (PDAA) — aimed at bringing structure, oversight, and innovation to a space long marked by ambiguity and missed opportunities.
The move, announced via a May 21 report on Pakistan’s national broadcaster PTV, reflects a broader shift in the country’s financial vision. Spearheaded by the Ministry of Finance, the PDAA is being designed as more than just a watchdog. It’s being positioned as the country’s launchpad into a digitized financial era.
From Ban Talks to Blockchain Builders
This development marks a significant departure from the government’s earlier stance. Not long ago, Pakistani officials were publicly wary of cryptocurrencies, even suggesting that digital assets would never be legitimized due to risks like money laundering and potential abuse for terror financing. But today, that caution has transformed into cautious optimism.
Muhammad Aurangzeb, Pakistan’s federal minister for finance and revenue, made it clear that this isn’t about merely keeping up with global trends — it’s about taking the lead. “Pakistan must regulate not just to catch up, but to lead,” Aurangzeb told PTV. He stressed that the PDAA would protect consumers, attract foreign investment, and build a regulatory framework ready for the innovations of tomorrow.
What Will the PDAA Actually Do?
The PDAA will have a wide-reaching mandate: licensing and monitoring crypto exchanges, wallets, custodians, tokenized platforms, stablecoins, and decentralized finance (DeFi) services. But what sets this initiative apart from similar regulatory bodies elsewhere is its ambition. The PDAA will also explore tokenizing national assets and government-issued debt, potentially unlocking liquidity and transforming how Pakistan handles public finance.
And here’s where things get especially innovative — the authority will play a role in converting Pakistan’s surplus electricity into revenue through regulated Bitcoin mining. In a country often challenged by energy distribution issues, this approach turns a liability into a potential asset, creating a new monetization stream that’s both modern and pragmatic.
Big Names, Bigger Goals
The establishment of the PDAA follows recommendations made by the Cryptocurrency Council of Pakistan, an advisory panel launched in March. The council has some serious global clout behind it — most notably former Binance CEO Changpeng Zhao as an adviser. According to Bilal Bin Saqib, the Council’s CEO, this isn’t just about crypto trading — it’s about reinventing Pakistan’s financial infrastructure.
“This is our chance to create global export channels in digital finance, to harness Web3 innovation, and to ensure financial inclusion on a scale we’ve never seen before,” Saqib said.
Rising Market, Rising Interest
Despite early resistance, crypto adoption in Pakistan has continued to surge. Chainalysis ranked Pakistan ninth in its 2024 Global Crypto Adoption Index, citing high retail participation and increasing usage of centralized platforms. And according to Statista, the number of crypto users in Pakistan could surpass 27 million by 2025, with market revenue projected to hit $1.6 billion. That places the country firmly in the global conversation, even if it still trails major players like the U.S., where crypto-related revenue is expected to top $9.4 billion.
A Digital Turning Point
Pakistan’s pivot toward formal crypto regulation isn’t just a bureaucratic move — it’s a signal to the world and to its own citizens that the country is ready to innovate, compete, and lead in the digital economy. By creating a regulatory body designed not only to monitor but to enable blockchain-based innovation, Pakistan is setting the stage for a very different kind of financial future — one driven by tokenized assets, digital commerce, and energy-backed Bitcoin infrastructure.
Whether the PDAA can deliver on its ambitious promises remains to be seen, but one thing is clear: Pakistan is no longer watching from the sidelines. It’s stepping onto the digital stage with a plan — and this time, it’s serious.
