Key Takeaways
- The country’s Ministry of Finance has endorsed the Pakistan Digital Assets Authority.
- The new body will supervise crypto-focused entities like exchanges, crypto custodians, and wallet providers.
- By advancing the new body, Pakistan aims to attract global investment and support domestic Web3 startups.
Pakistan’s lawmakers have endorsed forming a regulatory body to supervise crypto regulation in the country’s blockchain-based infrastructure and digital ecosystem.
According to a statement by the Ministry of Finance citing Finance Minister Muhammad Aurangzeb, the move aims to modernize Pakistan’s financial system and position the country as a serious player in the digital economy. The Pakistan Digital Assets Authority (PDAA) is a mandated regulatory body overseeing licensing, compliance, and innovation across crypto and tokenized services platforms.
Place Pakistan at the Forefront
The PDAA is also expected to oversee the operation of crypt entities, which include exchanges, custodians, digital wallets, tokenization services, stablecoins, and decentralized finance protocols. Finance Minister Muhammad Aurangzeb stated that Pakistan’s authority over digital assets was part of a broader strategy to place Pakistan at the forefront of financial innovation. Aurangzeb added that the body would help protect consumers and attract and develop global crypto investment. He said that Pakistan must:
“Regulate not just to catch up — but to lead […] make Pakistan a future-ready framework for digital finance.”
Attract International Investment
The new legislative body in charge of crypto regulation will also focus on monetizing the country’s excess electricity through regulated Bitcoin mining. According to sources close to the ministry, regulators already talked with numerous industry stakeholders to explore competitive energy pricing for the sector without subsidies. The PDAA will supervise Web3 startups and developers by providing legal clarity and an innovation-friendly environment. The move is expected to benefit over 60% of Pakistan’s population under 30, who are tech-savvy and talented, which is seen as a strategic advantage.
The decision to create the Pakistan Digital Assets Authority highlights developing changes under the Pakistan Crypto Council, which was established in March 2025 under the Finance Division to advise on digital asset policy. During the time, a government official stated:
“Pakistan is done sitting on the sidelines and wants to attract international investment, highlighting the country’s low-cost, high-growth market and a web3 native workforce ready to build.”
Ranks Among Top 10 Countries
Last April, the government appointed Binance founder Changpeng Zhao as a Strategic Advisor on cryptocurrencies following high-level meetings in Islamabad with the Prime Minister, Finance Minister, and central bank officials. According to Chainalysis data, Pakistan is estimated to have between 15 and 20 million cryptocurrency users and ranks among the top 10 countries globally in crypto adoption.
Conclusion
The move to get into crypto regulation in Pakistan happens at a time when online data from Statista shows the country is experiencing rapid growth, with estimates showing the number of crypto users is expected to amount to over 27 million by 2025, out of a population of 247 million. Moreover, the Pakistan crypto market is estimated to reach $1.6 billion in 2025. The United States currently leads a pack of countries with its crypto market generating estimated revenue of over $9.4 billion, according to Statista data.
Frequently Asked Questions
Why is Pakistan legalizing cryptocurrency now?
By legalizing crypto regulation now, the country aims to attract foreign investment, integrate blockchain technology into its economy, and regulate its growing number of crypto users.
How many people in Pakistan use cryptocurrency?
Approximately 15 to 20 million Pakistani crypto users are trading crypto, making Pakistan one of the top crypto-adopting nations globally.
What are the risks of legalizing cryptocurrency in Pakistan?
Experts say the risks include regulatory challenges, money laundering, and financial fraud. The government needs to implement strong AML and consumer protection measures to ensure a secure crypto environment.
