Pakistan to Regulate $1.6B Crypto Market with New Authority

Pakistan is entering the blockchain era with the creation of Pakistan Digital Assets Authority (PDAA), a new government body to regulate...

Written by: Arslan Butt • Thursday, May 22, 2025 • 2 min read

• Last updated: Thursday, May 22, 2025

Quick overview

Pakistan has established the Pakistan Digital Assets Authority (PDAA) to regulate and promote its digital financial landscape.
The PDAA aims to protect consumers, attract international investment, and position Pakistan as a leader in blockchain technology.
Regulated Bitcoin mining will utilize the country's surplus electricity, creating new revenue streams and fostering economic diversification.
Despite previous resistance, Pakistan's crypto market is rapidly growing, with projections of over 27 million users and $1.6 billion in market revenue by 2025.

Pakistan is entering the blockchain era with the creation of Pakistan Digital Assets Authority (PDAA), a new government body to regulate and advance the country’s digital financial landscape. Approved by Ministry of Finance, this is a big shift from regulatory hesitation to strategic innovation.

Federal Finance Minister Muhammad Aurangzeb called PDAA a “future-ready framework” to protect consumers, attract international investment and make Pakistan a blockchain leader. PDAA will license and regulate digital exchanges, wallets, custodians, tokenized asset platforms, stablecoins and DeFi apps.

The authority’s mission also includes tokenization of national assets and government debt to make them tradable in digital form and monetize surplus electricity by allowing regulated Bitcoin mining.

Bitcoin Mining and Surplus Electricity

Pakistan has long had surplus electricity. Under the new plan, this energy will be channeled into regulated Bitcoin mining—a process that not only creates new digital currency but also provides economic diversification.

The country will:

Convert excess electricity into a revenue generating asset
Foster energy efficiency through blockchain based tracking
Attract crypto mining companies with cheap energy

This is part of a bigger plan to integrate emerging technologies into Pakistan’s economy and increase foreign exchange earnings.

Pakistan’s Fast Crypto Adoption

Despite past resistance, Pakistan’s crypto market has grown fast. In 2023 a top government official ruled out crypto legalization. Yet in a year’s time, Pakistan ranked 9th on Chainalysis’ 2024 Global Crypto Adoption Index, driven by retail use.

Key growth indicators:

Crypto users to surpass 27 million by 2025
Market revenue to hit $1.6 billion by 2025, according to Statista
US is the global leader with $9.4 billion projected revenue

This is a bigger public acceptance of decentralized technologies and digital finance in Pakistan.

Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, summed it up: “This isn’t just about crypto. It’s about rewriting our financial future with tokenization, Web3 and digital finance innovation.”

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.