Pakistan Establishes Digital Asset Authority to Oversee Cryptocurrency Regulations

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Pakistan’s Ministry of Finance has greenlit the launch of the Pakistan Digital Assets Authority (PDAA), a new regulatory body tasked with overseeing blockchain-based financial systems. The agency will spearhead a robust, future-ready regulatory framework to foster innovation and position Pakistan at the forefront of the future’s digital economy.

Oversight Extends to Government Debt, Tokenization, and Mining

According to a report by the state-owned broadcaster PTV, the Pakistan Digital Assets Authority will manage broader financial strategies across the public and private sectors.

For the crypto industry, licensing, exchanges, wallets, custodians, tokenized platforms, stablecoins, and decentralized finance tools will be regulated. Every piece of the crypto puzzle will be under review. But its role goes even further.

The authority will also guide the tokenization of government assets and public debt at the national level.

That means turning real-world government assets into digital tokens. It will also help monetize surplus electricity through regulated Bitcoin mining. This is a strategy aimed at boosting revenue from untapped resources.

Another goal is supporting startups, especially those building on blockchain and Web3 technologies.

Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, shared his view on the news. He explained that the new body aims to improve access and open new channels for innovation and digital exports.

This new development follows the recommendation of Changpeng Zhao, widely known as CZ, the former CEO of Binance.

On March 14, Pakistan launched the Cryptocurrency Council, a national advisory body, with CZ appointed as one of its key advisors.

He brings global experience to the role, advising other governments, including Kyrgyzstan, on blockchain, cryptocurrency, and emerging technologies.

Pakistan Poised to Scale up Rank in Global Crypto Adoption

With the Digital Asset Authority in place, Pakistan is aiming higher.

The government wants to grow crypto adoption, but safely. That means keeping bad actors out while encouraging responsible innovation.

Strong crypto regulations and clear policies are seen as the best way to do that.

Other countries offer a glimpse of what is possible. For example, the United Arab Emirates ranks as the most crypto-focused nation in the world.

A recent study gave the UAE a score of 98.4, edging out Singapore (97.5) and the U.S. (85.4).

The UAE reached this milestone through decisive government support and a firm commitment to digital assets.

That leadership has turned the country into a global crypto hub, attracting companies, talent, and investors from around the world.

Pakistan is on a similar path.

In the 2024 Crypto Adoption Index by Chainalysis, Pakistan ranked ninth in the Central and Southern Asia and Oceania region.

While it still has room to grow, the progress is undeniable.

Market data also supports this. Statista projects that Pakistan’s crypto market will reach $1.6 billion by 2025.

The number of users is expected to hit 27.1 million, with a user penetration rate of 10.85%.

With the recent endorsement of the Pakistan Digital Assets Authority, the government is laying the groundwork for a transparent ecosystem.

Investors will have more confidence, startups will have more support, and the nation could become a serious player in the global crypto economy.

Pakistan isn’t alone in this effort. Around the world, countries are moving to regulate digital assets more seriously.

In March, Australia’s Treasury Department introduced new rules requiring crypto exchanges, custody providers, and brokers to follow financial regulations. The goal is to fuel more crypto adoption and take out bad actors.

Pakistan’s Digital Asset Authority is ready to compete globally as more countries regulate crypto.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.