- Pakistan launches PDAA to regulate crypto, targeting $25B in informal digital assets.
- In March, Binance co-founder Zhao joined the Pakistan Crypto Council as a strategic adviser.
- PDAA intends to facilitate the tokenization of national assets and regulated Bitcoin mining.
The government of Pakistan has decided to create the Pakistan Digital Assets Authority (PDAA) to monitor and regulate the country’s digital asset market. On Wednesday, the finance ministry released a statement that the PDAA will manage licensing, enforce compliance, and help with blockchain innovation in the financial sector. This step aims to set rules for trading digital currencies and help attract foreign investment.
Exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications are among the sectors the PDAA will oversee. The new authority aims to help manage regulations together, offering transparency and security to investors and consumers.
National Crypto Council and New Policy Framework
The country formed the Pakistan Crypto Council (PCC) in early March to establish legal rules for cryptocurrency operations. Changpeng Zhao, co-founder and former CEO of Binance, was appointed to the council as a strategic adviser, helping to guide regulatory changes. Although Pakistan permits using cryptocurrencies the State Bank of Pakistan has prohibited any company from running digital currency exchanges since 2021.
Last month, the government introduced its first comprehensive policy framework for digital assets. Developed by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, the framework aligns with the Financial Action Task Force’s (FATF) compliance standards. The policy aims to support responsible digital asset adoption while enhancing economic inclusion and innovation.
According to Finance Minister Muhammad Aurangzeb, also chairman of the PCC, the PDAA framework aims to safeguard consumers and promote global investment. However, he stressed that the country should strive to be a financial innovation leader rather than just trying to catch up with these trends worldwide.
PDAA’s Impact on Pakistan’s Economy and Investment
The PDAA is designed to supervise the large informal crypto market in Pakistan, which is estimated to exceed $25 billion. This will support tokenizing national assets and government debt, adding clarity for both investors in the country and international investors. The agency intends to use Bitcoin mining operations to monetize Pakistan’s surplus electricity.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, said this initiative is centered on expanding financial access and creating new export opportunities. He highlighted tokenization, digital finance, and Web3 technology as major areas for economic growth.
Statista estimates that by 2025, the country’s digital asset market revenue will hit $1.6 billion and reach over 27 million users. Establishing the PDAA is a big step toward integrating blockchain technology within it’s economy and regulatory system to the extent that countries like the UAE, Japan, Singapore, and Hong Kong have already adopted digital asset regulations.
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