Business Desk 
May 21, 2025
In a significant step to revamp the booming sphere of digital currencies, the government has approved the establishment of the Pakistan Digital Assets Authority (PDAA) to regulate digital assets in the country.
The dedicated regulatory body will oversee all aspects of Pakistan's virtual economy, including digital assets and blockchain-based financial systems.
The primary objective of PDAA's formation is to ensure compliance with the Financial Action Task Force (FATF) while enhancing innovation and economic inclusion.
"Pakistan must regulate not just to catch up, but to lead," stated Federal Minister for Finance Muhammad Aurangzeb. "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 added.
The impending authority will regulate various aspects of the country's digital asset landscape, including exchanges, custodians, wallets, and decentralised finance (DeFi) applications.
With the creation of the PDAA, Pakistan is expected to better align with thriving economies such as the UAE, Japan, Singapore, and Hong Kong, all of which have set up such regulatory bodies to encourage innovation.
