Pakistan sets up Digital Assets Authority to oversee crypto regulation

Pakistan’s Ministry of Finance confirmed the creation of the Pakistan Digital Assets Authority to regulate the country’s blockchain and cryptocurrency sector.

According to a May 21 report from state-owned broadcaster PTV, Finance Minister Muhammad Aurangzeb said the move is part of a broader push to modernise Pakistan’s financial system and position the country as a serious player in the digital economy.

What is the Pakistan Digital Assets Authority?

The Pakistan Digital Assets Authority (PDAA) is a newly approved regulatory body that will oversee the country’s blockchain-based financial infrastructure and digital asset ecosystem. 

Its mandate includes licensing, compliance, and innovation across platforms dealing with crypto and tokenized services.

The PDAA will supervise entities such as cryptocurrency exchanges, custodians, digital wallets, stablecoins, and decentralised finance (DeFi) protocols, and is designed to streamline oversight under a single, agile framework tailored for digital finance.

Beyond regulation, the authority is expected to play a key role in tokenizing national assets and government debt. Officials say this could open new channels for economic participation and transparency.

The agency will also focus on monetising Pakistan’s surplus electricity through regulated Bitcoin mining. Regulators have already begun talks with various industry stakeholders to explore competitive energy pricing for the sector without subsidies.

Among other duties, the PDAA will support Web3 startups and developers by providing legal clarity and an innovation-friendly environment. 

With over 60% of Pakistan’s population under 30, the country’s youth-driven tech-savvy talent is seen as a strategic advantage.

According to Finance Minister Aurangzeb, the PDAA is central to Pakistan’s strategy, which seeks to balance innovation with consumer protection.

“Pakistan must regulate not just to catch up — but to lead,” he said, adding that the goal is to invite global investment while ensuring FATF-compliant oversight.

Pakistan softens crypto stance

Under the previous administration, Pakistan took a hardline approach to crypto. In 2023, then Finance Minister Aisha Ghaus Pasha made it clear that the country had no intention of legalising digital assets, citing FATF concerns and the risks of regulatory evasion.

Meanwhile, regulatory bodies like the State Bank of Pakistan reinforced that stance, repeatedly warning against crypto use and classifying assets like Bitcoin as illegal tender.

But over time, that rigid stance began to soften, as grassroots-level adoption grew and policymakers started to explore the sector’s potential.

By late 2024, the government proposed key amendments to the SBP Act to allow the central bank to issue digital currency and manage both physical and digital money. 

It was one of the first real signs that the country was preparing to embrace digital finance in a more structured way.

That momentum continued into 2025 with the formation of the Pakistan Crypto Council (PCC), an advisory body launched under the Finance Division to guide policy on digital assets. The PDAA was among the key recommendations put forward by the council.

Led by Web3 advocate Bilal Bin Saqib, the PCC has been vocal about the country’s potential to become a hub for blockchain innovation. 

Commenting on the recent development, Saqib said the effort goes beyond just crypto, framing it as a broader push to reshape Pakistan’s financial future by “expanding access, and creating new export channels through tokenization, digital finance and Web3 innovation.”

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