Pakistan Forms Digital Asset Authority to Regulate Crypto

In a significant move towards embracing the digital economy, Pakistan has launched the Pakistan Crypto Council (PCC), a government-backed regulatory body to oversee and integrate blockchain technology and digital assets into the country’s financial framework. 

Overview

On May 21 2025, according to a report by state-owned broadcaster PTV, the Pakistan Digital Assets Authority (PDAA) will act as a regulatory body responsible for licensing and overseeing exchanges, custodians, wallets, tokenised platforms, stablecoins, and decentralised finance (DeFi) applications. 

Federal Minister for Finance and Revenue Muhammad Aurangzeb said, “Pakistan must regulate not to catch up, but to lead in the industry.” He added, “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.” 

A Strategic Shift Towards Digital Finance

The formation of the PCC marks a pivotal shift in Pakistan’s approach to digital finance. Previously cautious about cryptocurrencies, the government is now proactively seeking to harness the potential of blockchain technology. 

Finance Minister Aurangzeb chairs the council, underscoring the government’s commitment to this initiative. Bilal Bin Saqib, appointed as the council’s CEO, brings expertise in blockchain technology and digital innovation to spearhead the council’s objectives. 

The council’s mandate includes formulating policies, fostering innovation, and ensuring secure cryptocurrency adoption in Pakistan. By integrating digital assets into the financial system, the PCC aims to position Pakistan as a competitive player in the global digital economy while prioritising security, transparency, and innovation. 

Harnessing Youth Potential and International Collaboration

Pakistan’s young, tech-savvy population is a driving force behind the country’s push towards digital finance. With over 60% of the population under 30, there is a significant opportunity to upskill the youth in blockchain and AI technologies. This initiative is expected to drive job creation, boost digital exports, and position Pakistan as a hub for emerging tech talent. 

The PCC plans to engage with international crypto and blockchain organisations to ensure best practices. This includes studying regulatory models from countries like the United Arab Emirates, Nigeria, and Türkiye, aiming to align Pakistan’s regulations with global standards and attract foreign investment. 

Leveraging Surplus Energy for Crypto Mining

In addition to regulatory developments, Pakistan is exploring utilising its surplus electricity by supporting Bitcoin mining and AI data centres. This initiative aims to capitalise on the country’s overcapacity in the energy sector, exacerbated by the increased adoption of solar energy. By allocating excess power to energy-intensive industries like crypto mining, Pakistan seeks to boost innovation and economic growth.

 Changpeng Zhao, founder of Binance, has been appointed a strategic adviser to the PCC. His role includes supporting blockchain infrastructure, advising on regulatory frameworks, and assisting with national initiatives such as digital currency and youth education in blockchain technologies.

With these strategic initiatives, Pakistan is positioning itself at the forefront of the global shift towards blockchain technology and digital assets. Establishing the Pakistan Crypto Council signifies the government’s proactive stance in fostering a safe and compliant environment for investors, businesses, and innovators in the crypto space.