Finance Ministry Unveils Strategy to Regulate Digital Assets

The Ministry of Finance revealed a detailed plan on Wednesday aimed at overseeing digital assets and fostering the advancement of Pakistan’s virtual asset economy.

The government has approved the formation of the Pakistan Digital Assets Authority (PDAA), a specialized entity designed to regulate financial infrastructure based on blockchain technology. This decision was communicated through an official statement from the Ministry of Finance.

The central objective is to promote innovation that adheres to FATF guidelines, encourage economic inclusivity, and ensure the responsible integration of digital assets.

Finance Minister and Chairman of the Pakistan Crypto Council (PCC), Muhammad Aurangzeb, stated, “Pakistan needs to regulate with the intention of leading, not just catching up. The PDAA will help us to establish a forward-looking system that safeguards users, attracts global investment, and positions Pakistan as a leader in financial innovation.”

The government has indicated that the PDAA will function as a dedicated regulatory body responsible for managing licensing, compliance, and innovation within the digital asset sphere.

It will also supervise exchanges, custodians, wallets, tokenized platforms, stablecoins, and DeFi applications under a unified regulatory framework.

According to the statement, “This strategic move aligns Pakistan with nations that are also looking ahead, such as the UAE, Japan, Singapore, and Hong Kong. Each of these countries has set up digital asset regulators to encourage innovation while maintaining adherence to international financial standards.”

The PDAA is anticipated to regulate an informal crypto market valued at over $25 billion, facilitate the tokenization of national assets and government debt, offer legal clarity for international and domestic investors, enable the monetization of Pakistan’s excess electricity through regulated Bitcoin mining, and empower young people and startups to develop blockchain-based solutions on a large scale.

Bilal Bin Saqib, CEO of PCC, commented, “This extends beyond just cryptocurrency; it involves reshaping our financial future, broadening access, and establishing new export routes through tokenization, digital finance, and Web3 innovation.”