Pakistan Bets Big on Crypto: New Digital Assets Authority Set to Tame the Wild West of Blockchain

Pakistan’s government just fired a shot across the bow of unregulated crypto markets—launching a dedicated Digital Assets Authority to oversee everything from Bitcoin trading to blockchain startups. Move over, SEC—Karachi’s got skin in the game now.

The regulatory vacuum ends here. With this move, Pakistan joins the global scramble to legitimize crypto while somehow keeping scams and rug pulls at bay. Good luck threading that needle.

Expect heated debates over decentralization purists vs. institutional investors—because nothing says ’adoption’ like bureaucrats writing rules for tech designed to bypass them. Ah, the irony of regulated disruption.

Pakistan Aims to Lead in Financial Innovation with New Digital Assets Authority

Finance Minister Muhammad Aurangzeb described the MOVE as a bid to not only catch up, but lead.

“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,” he said.

The PDAA will also be responsible for tokenizing national assets and government debt, exploring regulated Bitcoin mining as a way to monetize surplus electricity, and supporting startups building blockchain-based infrastructure at scale.

The initiative follows recommendations from the cryptocurrency Council, a new advisory body launched in March, which lists former Binance CEO Changpeng Zhao as an advisor.

“This is not just about crypto — it’s about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation,” Bilal Bin Saqib, head of the council, said.

Pakistan has launched the Pakistan Digital Assets Authority (PDAA) to regulate its $25 billion informal crypto market and foster a secure digital asset ecosystem. #DigitalAssets #PDAA #Blockchain #Web3 #PakistanEconomy #CryptoRegulation pic.twitter.com/1SCX7Oh6fy

Pakistan’s regulatory stance has evolved rapidly. Just last year, officials had ruled out legalizing cryptocurrencies due to anti-money laundering concerns.

But with Pakistan ranked ninth in Chainalysis’ 2024 global crypto adoption index, pressure has mounted to establish clear rules as local adoption surges.

According to Statista, Pakistan’s crypto user base is projected to surpass 27 million by 2025, with market revenue expected to reach $1.6 billion.

Trump-Backed WLFI Signs LOI with Pakistan Crypto Council

Last month, World Liberty Financial (WLFI), a decentralized finance (DeFi) project endorsed by the TRUMP family, signed a Letter of Intent (LOI) with the Pakistan Crypto Council to promote blockchain adoption and DeFi growth across Pakistan.

The agreement was formalized on April 26 during a high-level meeting between WLFI co-founders Zak Folkman, Zach Witkoff, and Chase Herro, alongside Pakistan’s Prime Minister and senior government officials.

The partnership aims to accelerate blockchain innovation by establishing regulatory sandboxes to test blockchain-based financial solutions.

Pakistan’s Finance Ministry is taking steps toward formal cryptocurrency regulation, which could significantly change the country’s historically cautious stance on digital assets.

In a meeting with an international delegation focused on crypto investment and blockchain development, Aurangzeb emphasized the importance of exploring the sector’s potential rather than dismissing it outright.

The delegation included notable figures such as Gentry Beach Jr., a key investor who has pledged $1 billion in funding to Pakistan, along with tech entrepreneur Nikita Goldsmith, blockchain consultant Alex Malkov, and Cosmic Wire CEO Jerad Finck.