Key Takeaways:
Pakistan is set to launch the Pakistan Digital Assets Authority (PDAA), which will oversee the regulation of cryptocurrencies, decentralized finance (DeFi), and tokenized platforms.
The initiative aims to attract international investment and promote blockchain innovations across various sectors.
By 2025, Pakistan anticipates having over 27 million cryptocurrency users, thereby positioning itself as a key player in the regional crypto market.
In a significant policy shift following years of regulatory ambiguity, Pakistan will create a national authority dedicated to managing its burgeoning crypto and blockchain sector. The Ministry of Finance has approved the formation of the PDAA, which is designed to serve as the main regulatory body for digital asset exchanges, custodial services, wallets, stablecoins, and decentralized finance solutions.
This announcement was made by state broadcaster PTV on May 21. Finance Minister Muhammad Aurangzeb emphasized the intention behind the PDAA as a means to not only keep pace with global trends but to take a leadership role in financial innovation.
“With the PDAA, we are establishing a future-oriented framework that safeguards consumers, attracts global investment, and places Pakistan at the forefront of financial innovation,” Aurangzeb stated.
The newly formed authority will also undertake initiatives such as tokenizing national assets and government debt, investigating regulated Bitcoin mining to capitalize on extra electricity resources, and fostering startups focused on scalable blockchain infrastructure.
This initiative is in line with the recommendations from the Cryptocurrency Council, an advisory group recently established in March with former Binance CEO Changpeng Zhao on board as an advisor. Bilal Bin Saqib, head of the council, remarked, “This is not merely about cryptocurrencies—it’s a vision for redefining our financial landscape by broadening access and generating new export channels through tokenization, digital finance, and Web3 innovation.”
Pakistan has launched the Pakistan Digital Assets Authority (PDAA) to regulate its $25 billion informal crypto market and foster a secure digital asset ecosystem. #DigitalAssets #PDAA #Blockchain #Web3 #PakistanEconomy #CryptoRegulation pic.twitter.com/1SCX7Oh6fy
— Startup Pakistan (@PakStartup) May 21, 2025
Historically, Pakistan’s regulatory position has shifted rapidly; just last year, officials had dismissed the possibility of legalizing cryptocurrencies, citing concerns over money laundering. However, with the country being ranked ninth in Chainalysis’ 2024 global crypto adoption index, the urgency for establishing clear regulatory frameworks has increased amid rising local adoption.
According to Statista, the number of cryptocurrency users in Pakistan is predicted to exceed 27 million by 2025, with market revenue forecasted to reach $1.6 billion.
Trump-Backed WLFI Signs LOI with Pakistan Crypto Council
In a related development, World Liberty Financial (WLFI), a DeFi initiative backed by the Trump family, recently signed a Letter of Intent (LOI) with the Pakistan Crypto Council aimed at advancing blockchain and DeFi initiatives within the nation.
The LOI was formalized on April 26 during a meeting involving WLFI co-founders Zak Folkman, Zach Witkoff, and Chase Herro, as well as Pakistan’s Prime Minister and senior officials.
This collaboration seeks to expedite blockchain innovation, particularly through the establishment of regulatory sandboxes designed for testing blockchain-based financial solutions.
Pakistan’s Finance Ministry is making strides toward formalizing cryptocurrency regulations, a move likely to transform the country’s previously cautious approach toward digital assets. During discussions with an international delegation focused on crypto investments and blockchain development, Aurangzeb underscored the need to explore the sector’s potential rather than dismiss it outright.
The delegation included prominent investors such as Gentry Beach Jr., who has committed $1 billion in funding for Pakistan, as well as tech entrepreneur Nikita Goldsmith and blockchain consultant Alex Malkov.
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