Pakistan has established the Pakistan Digital Assets Authority (PDAA) to regulate blockchain-based financial infrastructure. The Ministry of Finance aims to oversee the licensing of custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. Federal Minister Muhammad Aurangzeb emphasized that the initiative will help Pakistan stay competitive in the crypto sector and facilitate the monetization of surplus electricity through Bitcoin mining. The PDAA emerged from recommendations made by the Cryptocurrency Council, which was created to promote the growth of blockchain solutions. Despite previous skepticism regarding crypto in Pakistan, its crypto market has seen rapid growth, with over 27 million expected crypto users by 2025 and projected revenue of $1.6 billion. This regulatory development is a response to previous concerns about money laundering and funding of terrorism, aiming to provide a secure and innovative financial future for the country.

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