Pakistan has announced the creation of a new regulatory body to govern cryptocurrencies and blockchain technologies. This decision aims to structure and streamline operations in the country's rapidly developing crypto market.
Establishment of the New Regulator
The Ministry of Finance in Pakistan has announced the establishment of the Pakistan Digital Assets Authority (PDAA), which will be responsible for regulating blockchain infrastructure. According to state media reports, the new body will oversee the licensing and regulation of exchanges, wallets, and decentralized finance applications. Federal Finance Minister Muhammad Aurangzeb emphasized that regulation is key for Pakistan to become a leader in the crypto industry.
Responsibilities of Pakistan Digital Assets Authority
The PDAA will be responsible for tokenizing national assets and government debt while supporting startups in creating blockchain-based solutions. This body also plans to facilitate the monetization of surplus electricity through regulated Bitcoin mining in Pakistan.
Future of Cryptocurrency in Pakistan
According to a Statista report, the cryptocurrency market in Pakistan is growing rapidly, with the number of crypto users expected to exceed 27 million this year. Such regulatory changes may open new opportunities for financial innovations and attract investments to the country. However, despite the positive steps, the situation regarding the legalization of cryptocurrencies remains complex in light of past statements from government officials about potential risks related to money laundering.
The establishment of the Pakistan Digital Assets Authority could be an important step for the development of the crypto industry in Pakistan, ensuring security and support for users and investors. At the same time, challenges and risks still demand a careful approach to regulation.
