In a bold move towards embracing financial innovation, the Government of Pakistan has announced the formation of the Pakistan Digital Assets Authority (PDAA). This newly established body, operating under the Ministry of Finance, aims to regulate and promote the use of cryptocurrencies and blockchain technologies across the country.

The PDAA will oversee the licensing and monitoring of digital currency exchanges, digital wallets, and blockchain-based applications. With this move, Pakistan signals its intent to not just adopt emerging technologies but to position itself as a leading regional player in the digital finance space.]

Smart Regulation Over Blanket Restrictions

Finance Minister Muhammad Aurangzeb underlined the government’s strategy to move beyond outdated restrictions and instead develop intelligent, forward-thinking regulation. “Pakistan needs smart rules, not just to follow but to lead in blockchain technology,” he stated.

The PDAA is tasked with several forward-looking responsibilities including:

• Protecting consumers in the digital asset ecosystem
• Attracting foreign investment into blockchain-related sectors
• Encouraging innovation by supporting startups and emerging tech firms

Moreover, the authority will explore the tokenisation of national assets and government debt, and examine how surplus electricity could be utilised for regulated Bitcoin mining, turning potential energy waste into economic opportunity.

Cryptocurrency Council’s Role in Shaping Strategy

The creation of the PDAA was based on recommendations from the Cryptocurrency Council, a think tank founded on March 14, 2025, with former Binance CEO Changpeng Zhao serving as a key advisor.

The Council’s CEO, Bilal Bin Saqib, noted that this initiative is part of a broader effort to transform Pakistan’s financial landscape. “We’re working to simplify access to digital assets, stimulate entrepreneurship, and open the door to technologies like blockchain and Web3,” he said.

This collaborative approach between government and private advisors indicates a shift in policy-making, leaning into expertise and global best practices to shape the country’s digital asset future.

A Shift from Past Caution to Forward Momentum

This progressive stance marks a departure from Pakistan’s earlier scepticism towards cryptocurrencies. In May 2023, then-Finance Minister Aisha Ghaus Pasha warned against legalising crypto assets due to concerns over compliance with Financial Action Task Force (FATF) regulations.

Despite regulatory hesitations, Pakistan’s crypto market has grown steadily, largely driven by public interest and tech-savvy youth. The PDAA now gives that growth a formal structure, offering a clear pathway for legal and secure innovation in the space.

A New Chapter for Digital Finance

With the launch of the PDAA, Pakistan is not merely regulating digital currencies, it is redefining its place in the global digital economy. By setting up a robust framework for digital asset governance, the country hopes to attract international blockchain firms, fintech investors, and developers eager to operate in a secure, regulated environment.

Pakistan’s pivot towards blockchain leadership reflects a growing understanding: that the future of finance lies not in resisting change, but in managing it wisely.