Pakistan creates Digital Asset Authority to regulate crypto

Pakistan has officially established the Pakistan Digital Assets Authority (PDAA) to regulate its burgeoning cryptocurrency and blockchain sector. This move aims to create a comprehensive legal framework for digital assets, including cryptocurrencies, decentralized finance (DeFi) platforms, stablecoins, and tokenized national assets.

The PDAA will oversee licensing, exchanges, custodians, wallets, and DeFi applications, ensuring compliance and consumer protection.

Plans include tokenizing government debt and other national assets to enhance liquidity and investment opportunities. The authority will facilitate the use of surplus electricity for regulated Bitcoin mining operations, aiming to boost the digital economy.

The PDAA will assist startups in developing scalable blockchain-based solutions, fostering innovation and economic growth.

Finance Minister Muhammad Aurangzeb chairs the PDAA, with Bilal Bin Saqib, a blockchain expert and former adviser to the finance minister, serving as its CEO. The authority's board includes high-ranking officials from the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan, ensuring a coordinated approach to digital asset regulation.

The establishment of the PDAA reflects Pakistan's commitment to embracing digital finance while ensuring regulatory clarity and investor protection. By fostering a secure and compliant environment, Pakistan aims to position itself as a competitive player in the global digital economy.

This development marks a significant step towards integrating digital assets into Pakistan's financial system, potentially unlocking new avenues for economic growth and innovation.

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