The Pakistan Digital Assets Authority (PDAA) is poised to become the central institution responsible for regulating and licensing all key components of cryptocurrency exchanges, digital wallets, tokenized platforms, stablecoins, custodians, and DeFi applications.
Speaking to PTV, Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue, emphasized the country’s ambition to lead rather than follow in this emerging space.
He said:
“Pakistan must regulate not just to catch up, but to lead in the fintech space.”
Pakistan’s Federal Minister For Finance & Revenue, Muhammad Aurangzeb
Source: Pakistan Ministry Of Finance
He further highlighted that the establishment of the PDAA is not just a regulatory necessity, but a strategic advancement aimed at building a “future-ready framework” that will:
The newly proposed Pakistan Digital Assets Authority will have a multifaceted mandate that goes far beyond mere oversight. It is expected to:
This regulatory leap stems from recommendations made by the Cryptocurrency Council of Pakistan, an advisory body formed in March 2024. Interestingly, the Council includes former Binance CEO Changpeng Zhao as one of its key advisors.
Bilal Bin Saqib, the CEO of the Pakistan Crypto Council, positioned the PDAA initiative as a broader move to reshape Pakistan’s financial landscape.
Saqid explained:
“This is not just about crypto. It’s about rewriting our financial future, expanding financial inclusion, and creating new digital export avenues through Web3 innovation and tokenization.”
The Council envisions a digital economy where Pakistan can capitalize on its untapped human and energy resources while integrating cutting-edge financial technologies.
Back in May 2023, former Pakistani Minister of State for Finance, Aisha Ghaus Pasha, firmly stated:
“Pakistan would never legalize cryptocurrencies, as there are numerous risks associated with financial crimes and regulatory evasion.”
Her remarks echoed the concerns of the Financial Action Task Force (FATF), a global body that combats money laundering and terrorist financing. However, the sentiment around digital assets in Pakistan has dramatically shifted over the past year.
In 2024, Pakistan made an impressive leap in global rankings, coming in 9th on Chainalysis’ Global Crypto Adoption Index.
Pakistan Ranked 9th Globally In Chainalysis’ 2024 Crypto Adoption Index
Source: Chainalysis
This surge was largely fueled by:
Meanwhile, data from Statista illustrates a rapidly growing crypto user base in the country. Pakistan is expected to surpass 27 million crypto users by 2025, out of a total population of approximately 247 million.
Statista’s forecasts also show that revenue in Pakistan’s crypto market could hit $1.6 billion in 2025.
While this is still dwarfed by the United States, which is projected to generate over $9.4 billion in crypto revenue, Pakistan’s numbers highlight a promising growth trajectory nonetheless.
In parallel with adoption, regulatory authorities such as Pakistan’s Federal Investigation Agency (FIA) have also moved to ensure that growth in the digital asset space does not come at the cost of financial security.
In April 2024, the FIA introduced a draft regulatory framework focused on:
In any case, the endorsement of the PDAA marks a pivotal moment for Pakistan’s digital economy.
The initiative also reflects a broader ambition, to not only regulate digital assets but to unlock their transformative potential in modernizing national finance, boosting exports, and fostering innovation in Web3 and beyond.
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