Industry stakeholders have welcomed proposal as step towards aligning Pakistan’s regulatory environment with international norms
The government has announced plans to establish a dedicated regulator for digital assets, a move industry experts say signals Pakistan’s intention to formalise and accelerate growth in the virtual finance sector.
The Ministry of Finance has announced the formation of the Pakistan Digital Assets Authority (PDAA), which will be tasked with regulating blockchain-based financial infrastructure. Officials say the body will support innovation while ensuring compliance with international standards, including those set by the Financial Action Task Force (FATF).
Industry stakeholders have welcomed the proposal as a step towards aligning Pakistan’s regulatory environment with international norms. In his comments to The News, Web3 and digital asset consultant Arsalan Khan said that the government’s move “reflects a maturing approach towards virtual asset regulation”.
The PDAA is expected to act as a centralised authority for the licensing, supervision and compliance of all entities operating in the digital asset ecosystem. This includes exchanges, digital wallets, custodians, tokenisation platforms, stablecoins and decentralised finance (DeFi) applications.
Khan added, “Having advisors such as [World Liberty Financial] WLF and CZ [Binance founder Changpeng Zhao] and by aligning with global best practices, this initiative can provide much-needed clarity for startups and institutions, while also laying the groundwork for secure, compliant and innovation-driven adoption of blockchain technologies.
The move places Pakistan among a growing group of jurisdictions — including the United Arab Emirates, Singapore, Hong Kong and Japan — that are setting up dedicated regulatory structures to manage the risks and opportunities presented by digital financial technologies.
Former chairperson of the Pakistan Software Houses Association (P@SHA) Muhammad Zohaib Khan welcomed the government’s move and said, “This is a great initiative considering the world’s progress towards digital assets, including digital currencies. The future is all about digital assets.”
He said that the government’s move paves the way for Pakistan to come up with its virtual assets. As things progress, he added, “there will be opportunities on the cybersecurity front as well.” Commending the team working on improving Pakistan’s position in the crypto world, Khan remarked that this “is the right time” for such a move, adding that the country will hopefully take “full advantage of what is happening in the world” and be part of the latest innovations.
No timeline has yet been disclosed for the operationalisation of the PDAA, but the announcement marks a clear shift in the government’s approach towards digital assets — from restriction to regulation.
Mutaher Khan, founder of data insights firm Data Darbar, said that there is a need for coherent and coordinated regulatory guidelines from the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) — the former for cryptocurrency investments and the latter for crypto-based payments.
Mutaher said that the SBP’s recently launched regulatory sandbox can help build frameworks for payments. He said that the SECP has yet to announce a framework that can provide a roadmap for cryptocurrency investments, though, he added, the authority also has its sandbox.
He said that the government’s recent move is the first step towards facilitating cryptocurrency-based companies in Pakistan, allowing local firms to break through into the crypto market.
In its press release, the finance ministry added the government hopes the new authority will bring legal clarity to both domestic and international investors, facilitate the tokenisation of government assets and debt, and potentially enable new monetisation avenues such as regulated cryptocurrency mining using surplus electricity. The initiative comes at a time when Pakistan’s unregulated crypto market is estimated to exceed $25 billion, the statement read.
“This is a future-oriented step to create a regulatory framework that protects consumers, attracts investment, and positions Pakistan as a credible player in financial innovation,” said Federal Minister for Finance and Revenue Muhammad Aurangzeb in the statement.
Bilal Bin Saqib, chief executive of the Pakistan Crypto Council, described the development as an opportunity to reshape the country’s financial architecture, foster inclusion and expand digital exports through Web3 applications.
Reference Link:- https://www.thenews.com.pk/print/1314042-industry-buoyed-by-govt-move-to-set-up-digital-assets-body