Pakistan Launches Digital Asset Authority to Regulate Bitcoin and Crypto Sector

In Brief:

Pakistan forms the Pakistan Digital Asset Authority (PDAA) to oversee Bitcoin and digital assets under one regulatory framework.

The agency will regulate exchanges, wallets, DeFi apps, tokenization platforms, and stablecoins in compliance with FATF standards.

Pakistan has officially established the Pakistan Digital Asset Authority (PDAA), a new regulatory body tasked with overseeing the nation’s digital asset ecosystem, including Bitcoin, exchanges, custodians, wallets, tokenization platforms, and DeFi applications. The move marks a major step toward developing a comprehensive and unified regulatory framework for the country's fast-growing crypto industry.

According to Foresight News, the PDAA aims to foster responsible adoption, consumer protection, and economic inclusion, all while aligning with Financial Action Task Force (FATF) standards. It reflects Pakistan’s broader ambition to modernize its financial system and attract global investment into the digital economy.

Muhammad Aurangzeb, Pakistan’s Finance Minister and Chairman of the Cryptocurrency Committee (PCC), emphasized the country’s intent to move beyond catching up. “Pakistan must strengthen regulation, not just to catch up, but to lead industry development,” he said. “Through PDAA, we are creating a forward-looking framework to protect consumer rights and attract global investment.”

The PDAA will also play a critical role in mitigating crypto-related risks, including illicit finance and unregulated activity, which have drawn increased scrutiny worldwide. Its establishment signals Pakistan's desire to embrace digital assets under a structured and secure regime, potentially opening new opportunities for Web3 innovation and financial technology startups within the region.

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