In a major shift towards embracing digital finance, Pakistan has launched the Pakistan Digital Assets Authority (PDAA), a dedicated body designed to oversee the country’s growing digital currency and blockchain ecosystem. This move, announced by the Ministry of Finance, signals Pakistan’s intent to not just regulate but actively lead in the realm of financial technology across South Asia.
A Structured Approach to Digital Asset Oversight
The PDAA will act as the central authority for approving and monitoring digital currency exchanges, wallets, and blockchain-based applications. Its responsibilities include enforcing safety standards, ensuring regulatory compliance, and encouraging the use of secure technologies in digital finance. This development marks a significant departure from Pakistan’s previous cautionary stance on cryptocurrencies, and reflects a broader national effort to modernise the financial sector.
Finance Minister Muhammad Aurangzeb emphasised the need for “smart rules” that both protect consumers and enable innovation. “Pakistan needs smart rules, not just to follow but to lead in blockchain technology,” he stated. The authority’s mission will include exploring the tokenisation of national assets and sovereign debt, regulated Bitcoin mining using surplus electricity, and fostering blockchain innovation among startups.
Vision Backed by Global and Local Expertise
The creation of PDAA stems from recommendations made by the Cryptocurrency Council, a body established on 14 March 2025. Notably, the council includes former Binance CEO Changpeng Zhao as an advisor and is led by CEO Bilal Bin Saqib. Their vision revolves around transforming Pakistan’s financial system into a digital-friendly environment that is more accessible, efficient, and inclusive.
According to Bin Saqib, this initiative aims to open up the country’s financial landscape to digital assets and Web3 technologies, thereby creating new economic opportunities. The council’s advisory role has been instrumental in crafting a strategy that balances innovation with security and regulatory compliance.
Shifting From Skepticism to Strategic Adoption
Pakistan’s stance on cryptocurrencies has evolved considerably. In May 2023, then-Finance Minister Aisha Ghaus Pasha had firmly opposed legalising digital currencies, citing potential conflicts with Financial Action Task Force (FATF) guidelines. Despite these reservations, the popularity and use of cryptocurrencies continued to rise within the country, demonstrating a clear public interest in digital finance solutions.
The formation of PDAA suggests that the government now recognises the potential benefits of integrating blockchain into the formal economy. By establishing a regulated environment, the government aims to mitigate risks while tapping into the advantages of decentralised finance.
Aiming to Become a Regional Hub for Blockchain
Pakistan’s broader ambition is to establish itself as a regional leader in financial technology. By promoting blockchain innovation, attracting foreign investment, and facilitating a secure digital asset ecosystem, the country is positioning itself as a hub for emerging financial technologies.
The PDAA is expected to serve not only as a regulator but also as a catalyst for innovation. By supporting tokenisation, responsible crypto mining, and blockchain entrepreneurship, Pakistan aims to reshape its digital economy and elevate its status on the global fintech map.
