Pakistan’s Bold Leap into Crypto: Introducing the Pakistan Digital Assets Authority (PDAA)

Pakistan has taken a major step forward in embracing blockchain and cryptocurrency with the establishment of the Pakistan Digital Assets Authority (PDAA).

• PDAA to regulate digital assets
• Aims to attract global investment
• Engages with global crypto leaders

Approved by the Ministry of Finance, the PDAA is set to regulate the digital asset sector, covering everything from crypto exchanges and custodians to digital wallets, tokenization services, stablecoins, and decentralized finance (DeFi) protocols. Tokenization involves converting physical assets into digital tokens on a blockchain, which can then be traded or used as collateral. Stablecoins are cryptocurrencies designed to minimize volatility by pegging their value to a stable asset like the US dollar. DeFi, or decentralized finance, refers to financial services built on blockchain technology, offering traditional financial services without central intermediaries.

Finance Minister Muhammad Aurangzeb stated,

Pakistan must regulate not just to catch up — but to lead.

This bold move shifts Pakistan from a cautious stance against cryptocurrencies to a proactive approach, aiming to position the country as a leader in financial innovation. The PDAA’s establishment is a part of a comprehensive strategy to protect consumers, draw global investment, and create a digital finance framework ready for the future.

Complementing the PDAA, Pakistan is also setting up the Pakistan Crypto Council (PCC) to further strengthen its crypto ecosystem. The PCC, launched in March 2025 under the Finance Division, advises on digital asset policy and has enlisted Binance founder Changpeng Zhao as a Strategic Advisor. This collaboration with global crypto leaders underscores Pakistan’s ambition to become a hub for digital assets.

CEO of the Pakistan Crypto Council, Bilal Bin Saqib, emphasized the country’s readiness to engage with the global crypto market, saying,

Pakistan is done sitting on the sidelines and wants to attract international investment.

To support this, Pakistan is exploring the use of surplus electricity for Bitcoin mining. Consultations with the Power Division started in March to explore competitive electricity pricing models for digital assets. This initiative not only aims to leverage Pakistan’s excess power but also aligns with the country’s broader goal of leading in the crypto space.

With an estimated 15 to 20 million cryptocurrency users, Pakistan ranks among the top 10 countries globally in crypto adoption, according to Chainalysis. This high adoption rate, combined with the new regulatory framework, positions Pakistan uniquely to capitalize on the digital asset sector.

The shift in policy includes proposed amendments to the State Bank of Pakistan (SBP) Act in late 2024, moving from a cautious to a more welcoming stance on digital currencies. This aligns with global trends where emerging markets are leveraging blockchain for economic modernization and growth. Discussions and community feedback on these changes can be found on Reddit.

Beyond regulation, the PDAA’s roles extend to tokenizing national assets, facilitating Bitcoin mining, and supporting local blockchain startups. These initiatives aim to position Pakistan as a competitive player in the global blockchain and cryptocurrency landscape. For more detailed information on the PDAA, you can visit the PDAA wiki.

However, this bold move isn’t without its challenges. Regulatory hurdles, potential resistance from traditional financial sectors, and technical challenges could pose obstacles. Critics argue that rapid adoption could lead to regulatory chaos without proper checks and balances. While Pakistan aims to lead, it must also navigate the sharks in the water—scammers and regulatory nightmares. The potential impact of PDAA on Pakistan’s economy is a subject of ongoing research and discussion.

Despite these challenges, Pakistan’s crypto scene is heating up faster than a miner’s laptop—thanks to the PDAA and some strategically used surplus electricity. Imagine a world where you can buy and sell assets using blockchain technology in Pakistan, all regulated by the PDAA. That’s the vision behind this new authority.

Key Takeaways and Questions

• What is the role of the Pakistan Digital Assets Authority (PDAA)?

  The PDAA oversees licensing, compliance, and innovation in Pakistan’s digital asset sector, including crypto exchanges, custodians, digital wallets, tokenization services, stablecoins, and DeFi protocols.

• How does the PDAA aim to benefit Pakistan’s economy?

  By protecting consumers, attracting global investment, and developing a future-ready framework for digital finance, the PDAA aims to position Pakistan as a leader in financial innovation.

• What recent changes have occurred in Pakistan’s cryptocurrency policy?

  Pakistan has shifted from a cautious and restrictive stance to a more welcoming policy, with the establishment of the PDAA, the Pakistan Crypto Council, and proposed amendments to the SBP Act to manage digital currency.

• How is Pakistan utilizing its surplus electricity for cryptocurrency?

  Pakistan is exploring competitive electricity pricing models to facilitate Bitcoin mining and engage with global crypto mining firms.

• Who is involved in advising Pakistan’s crypto policy?

  The Pakistan Crypto Council, led by CEO Bilal Bin Saqib, and Binance founder Changpeng Zhao, who was appointed as Strategic Advisor to the national crypto council.