Pakistan Launches Digital Assets Authority to Regulate $25 Billion Crypto Market

Pakistan has taken a significant step towards embracing the future of finance by launching the Pakistan Digital Assets Authority (PDAA). This new regulatory body is tasked with overseeing the licensing, compliance, and innovation within the digital asset ecosystem. The PDAA will regulate a wide range of digital financial infrastructure, including exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications, all under a single, agile framework.

The establishment of the PDAA aligns with Pakistan's commitment to comply with the Financial Action Task Force (FATF) requirements, ensuring that the country's digital asset market operates within global financial norms. This move is part of a broader strategy to foster innovation, economic inclusion, and responsible adoption of digital assets. The PDAA is expected to regulate an informal crypto market valued at over $25 billion, enabling the tokenization of national assets and government debt, and providing legal clarity to both global and local investors.

The PDAA's mandate extends beyond mere regulation; it aims to facilitate the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining and empower youth and startups to develop blockchain-based solutions at scale. By creating a future-ready framework, Pakistan is positioning itself as a competitive player in the global digital economy, inviting responsible innovation and building trust with investors, entrepreneurs, and international partners.

The initiative is seen as a strategic decision that places Pakistan alongside other forward-thinking economies, which have also established digital asset regulators to foster innovation while ensuring compliance. The PDAA's comprehensive approach is expected to rewrite Pakistan's financial future, expand access to digital finance, and create new export channels through tokenization and Web3 innovation.

The launch of the PDAA is a landmark move that signals Pakistan's intent to lead in the digital asset space, rather than merely catching up. By embracing this technology, Pakistan aims to protect consumers, invite global investment, and put itself at the forefront of financial innovation. The PDAA's establishment is a clear indication of Pakistan's commitment to modernizing its digital finance infrastructure and ensuring that it remains competitive in the global market.