Key Takeaways:
- Pakistan will launch the Pakistan Digital Assets Authority to regulate crypto, DeFi, and tokenized platforms.
- The new body aims to attract global investment and support blockchain innovation across key sectors.
- With over 27 million users expected by 2025, Pakistan is positioning itself as a leading crypto market in the region.
Pakistan is set to establish a new national authority to oversee its fast-growing crypto and blockchain ecosystem, marking a major policy shift after years of regulatory uncertainty.
The Ministry of Finance has endorsed the creation of the Pakistan Digital Assets Authority (PDAA), which will act as the primary regulator for digital asset exchanges, wallets, custodians, tokenized platforms, stablecoins, and decentralized finance (DeFi) services.
The announcement was made via a May 21 report by state broadcaster PTV.
Finance Minister Muhammad Aurangzeb described the move as a bid to not only catch up, but lead.
“With the PDAA, we are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation,” he said.
The PDAA will also be responsible for tokenizing national assets and government debt, exploring regulated Bitcoin mining as a way to monetize surplus electricity, and supporting startups building blockchain-based infrastructure at scale.
The initiative follows recommendations from the Cryptocurrency Council, a new advisory body launched in March, which lists former Binance CEO Changpeng Zhao as an advisor.
“This is not just about crypto — it’s about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation,” Bilal Bin Saqib, head of the council, said.
Pakistan’s regulatory stance has evolved rapidly. Just last year, officials had ruled out legalizing cryptocurrencies due to anti-money laundering concerns.
But with Pakistan ranked ninth in Chainalysis’ 2024 global crypto adoption index, pressure has mounted to establish clear rules as local adoption surges.
According to Statista, Pakistan’s crypto user base is projected to surpass 27 million by 2025, with market revenue expected to reach $1.6 billion.
Trump-Backed WLFI Signs LOI with Pakistan Crypto Council
Last month, World Liberty Financial (WLFI), a decentralized finance (DeFi) project endorsed by the Trump family, signed a Letter of Intent (LOI) with the Pakistan Crypto Council to promote blockchain adoption and DeFi growth across Pakistan.
The agreement was formalized on April 26 during a high-level meeting between WLFI co-founders Zak Folkman, Zach Witkoff, and Chase Herro, alongside Pakistan’s Prime Minister and senior government officials.
The partnership aims to accelerate blockchain innovation by establishing regulatory sandboxes to test blockchain-based financial solutions.
Pakistan’s Finance Ministry is taking steps toward formal cryptocurrency regulation, which could significantly change the country’s historically cautious stance on digital assets.
In a meeting with an international delegation focused on crypto investment and blockchain development, Aurangzeb emphasized the importance of exploring the sector’s potential rather than dismissing it outright.
The delegation included notable figures such as Gentry Beach Jr., a key investor who has pledged $1 billion in funding to Pakistan, along with tech entrepreneur Nikita Goldsmith, blockchain consultant Alex Malkov, and Cosmic Wire CEO Jerad Finck.
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