Pakistan Establishes Digital Assets Authority to Regulate Crypto Market – Coincu

Pakistan’s Ministry of Finance announced the formation of the Pakistan Digital Assets Authority (PDAA) on May 22, 2025, aimed at regulating digital assets. With regulations covering exchanges and wallet providers, Pakistan anticipates encouraging innovation in its financial sector.

The establishment of the PDAA marks a significant shift toward structured digital asset management in Pakistan. This move is expected to bolster consumer protection and enhance global investment opportunities.

Pakistan Targets $25B Crypto Market with New Authority

The Pakistani government has formed the PDAA to effectively regulate its digital asset landscape. Prior to this, the country’s crypto market operated without formal oversight, creating challenges for stakeholders. The PDAA’s mandate includes regulating exchanges, custodians, and DeFi platforms along with promoting energy monetization through Bitcoin mining. Pakistan’s informal crypto market is valued at over $25 billion.

Numerous changes are anticipated from this formation, including clearer frameworks for investors and a robust regulatory environment. The initiative aims to attract foreign investments, positioning Pakistan as a favorable destination for digital finance innovations. Regulation of government bonds and national asset tokenization is among the PDAA’s objectives.

Key players emphasize the opportunity presented by the PDAA. Finance Minister Muhammad Aurangzeb articulated that the framework will position Pakistan as a leader in financial innovation. “Pakistan must regulate not just to catch up — but to 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.”

Regulatory Shift in Pakistan Sets Stage for Crypto Innovation

Did you know? In 2018, Pakistan’s State Bank banned financial institutions from providing services related to virtual currencies. Today’s regulatory shift signals a substantial policy change.

CoinMarketCap reports Bitcoin (BTC) pricing at $110,699.65 with a market cap of $2.20 trillion, dominating 63.19% of the market. A 24-hour volume of $90.83 billion shows a 70.98% increase. Circulating supply stands at 19,868,137 BTC of a 21 million cap.

The Coincu research team anticipates that PDAA could trigger global investments, enhancing Pakistan’s digital asset market. Oversight might encourage technological advancements, with tokenization and blockchain applications fostering financial innovation. The energy monetization strategy presents a sustainable investment channel for international stakeholders.