PDAA Established to Regulate Cryptocurrencies in Pakistan

The Pakistan Digital Assets Authority (PDAA), announced by Finance Minister Muhammad Aurangzeb, signals a shift to formal regulation of digital currencies. The body will focus on encouraging foreign investment, user protection, and fostering Web3 innovation.

“The PDAA is not just about regulation. It’s also about creating a strong, forward-thinking system that invites foreign investment, protects users, and encourages Web3 innovation.” — Muhammad Aurangzeb, Finance Minister

The PDAA, under the Finance Ministry, will regulate Bitcoin, stablecoins, and decentralized finance. Changpeng Zhao (“CZ”), co-founder of Binance, joins as an adviser to the Pakistan Crypto Council, showing potential international collaboration and support.

The institution of PDAA is expected to impact Bitcoin and blockchain industries, aligning with trends in the UAE and Singapore that previously increased institutional flows. A regulated framework will aim for FATF compliance and economic inclusion, as noted in the official statement.

Pakistan’s move mirrors regional efforts, potentially positioning Pakistan as a South Asian crypto hub. Long-term implications may include a surge in foreign investments, influenced by regulatory clarity and strategic partnerships.

The PDAA’s establishment underlines Pakistan’s commitment to proactive crypto oversight, aiming for enhanced global connectivity and economic gains. With clear regulation, significant institutional participation is anticipated, mirroring global financial trends.