Pakistan is taking significant steps in cryptocurrency regulation by officially registering a new body, the Pakistan Digital Assets Authority (PDAA), to oversee digital assets.
Establishment of the Pakistan Digital Assets Authority
The Ministry of Finance of Pakistan has approved the creation of the Pakistan Digital Assets Authority (PDAA), which will oversee licensing and compliance in the digital asset space. This initiative was highlighted in a recent report by the state broadcaster PTV.
Goals and Powers of the New Authority
The PDAA will monitor the operations of cryptocurrency exchanges, wallet providers, custodians, tokenization platforms, stablecoins, and decentralized finance protocols. Finance Minister Muhammad Aurangzeb emphasized that PDAA must not only catch up with global trends but also take a leading position in regulation.
Changes in Cryptocurrency Regulation
After years of resistance at the government level regarding blockchain, Pakistan began changing its stance in late 2024, when proposals were made to amend the central bank law to allow it to regulate digital currencies. The establishment of the Pakistan Crypto Council (PCC) also signifies a shift towards a more open policy regarding cryptocurrencies.
The establishment of the Pakistan Digital Assets Authority represents an important step towards the legalization and development of a safer environment for digital assets in Pakistan, which could positively impact foreign investment attraction.
