Latest news with #PDAA
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Business Standard
2 days ago
- Business
- Business Standard
Pakistan plans bitcoin reserve but govt says crypto still banned at home
In a high-profile presentation at the Bitcoin Vegas 2025 Conference, Pakistan took the global cryptocurrency community by surprise with an announcement to establish a state-backed Strategic Bitcoin Reserve, described as a symbolic step toward long-term engagement with decentralised finance. The declaration came from Bilal Bin Saqib, recently appointed as Special Assistant to the Prime Minister on Crypto and Blockchain with the status of a Minister of State. Saqib, also serving as CEO of the newly created Pakistan Crypto Council, made the announcement after delivering a keynote address attended by influential figures including US Vice President JD Vance, Eric Trump, and Donald Trump Jr. 'We want to thank the US because we are getting inspired from them,' Saqib said, directly tying Pakistan's crypto strategy to US President Donald Trump's pro-crypto stance. Is cryptocurrency legal in Pakistan? Government says no On May 30, Finance Secretary Imdadullah Bosal clarified before the National Assembly's Standing Committee on Finance and Revenue that cryptocurrency is not recognised as legal tender, citing guidance from the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). 'There will be a legal framework only when the government formally takes a decision,' Bosal said, confirming that existing crypto activities remain unlawful pending legislative changes. Pakistan proposes national Bitcoin wallet and crypto mining plan Saqib had revealed plans for a national bitcoin wallet to hold digital assets 'already in state custody,' framed not as speculative investments but as part of a 'sovereign reserve' to signal Pakistan's commitment to digital finance. In a bid to attract international crypto capital and technology firms, Saqib also announced the allocation of 2,000 megawatts of surplus electricity in the initiative's first phase. This power will support bitcoin mining and AI data centres, opening what Saqib described as a 'new digital frontier' to global investors, sovereign miners, and clean energy partners. 'Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation,' Saqib said in a statement from his office. 'If you're building something real, come build it in Pakistan.' What is the Pakistan Digital Assets Authority and what will it do? Although parallel to Saqib's overseas campaign, the Pakistani government moved to create the Pakistan Digital Assets Authority (PDAA) on May 22, to regulate and formalise crypto and blockchain technologies. According to official statements, PDAA aims to develop a FATF-compliant regulatory framework, oversee virtual asset service providers (VASPs), and integrate blockchain in land records, finance, and governance systems. The Finance Division said the broader strategy was designed to monetise surplus electricity, create high-tech jobs, attract billions in foreign direct investment, and generate substantial revenue for the state. Economists warn against speculative crypto strategy and public risk While the government pitches crypto as an avenue for digital growth and foreign investment, several Pakistani economists are expressing alarm at what they view as a risky pivot toward fictitious assets. While some of these moves appear geared toward influence-building in Washington—especially with figures close to the Trump administration taking an active interest in Pakistan's crypto developments—economists argue that when crypto is positioned as a serious business proposition by the government, it becomes dangerous because the resources being put at risk are public. One concern is the speculative nature of sovereign crypto holdings. Economists noted that suggestions to invest part of Pakistan's foreign exchange reserves in crypto mirror tactics used by speculative brokers, highlighting bitcoin's historic price rises without mentioning its extreme volatility. Bitcoin mining in Pakistan: Why are electricity subsidies raising questions? The government's allocation of 2,000 MW for bitcoin mining has also sparked scrutiny. Economists question why crypto miners should receive electricity at subsidised rates per unit, far below the rate paid by households and industry, calling the move 'puzzling and opaque.' Crypto, unlike traditional assets such as money or gold, remains largely a speculative construct with limited liquidity and broader systemic risks. Experts have likened it to previous financial bubbles built on fictitious assets, from plot file scams to the collateralised debt obligations (CDOs) that precipitated the 2008 global financial crisis.
The Print
3 days ago
- Business
- The Print
Why is Pakistan going all out on crypto? There's a Donald Trump angle
Crypto is already widely popular in Pakistan, with around 20 million users —far more than the 420,000 people who invest in the capital market—placing the country among the global top 10 for crypto trading. In a surprising move, in late April, Pakistan partnered with World Liberty Financial (WLF), a company linked to the US President Donald Trump's family. WLF has promised to help Pakistan develop blockchain tools, tokenise assets, and provide crypto industry guidance. However, details of the deal remain vague. New Delhi: As its economy remains in shambles and ever dependent on IMF bailouts, a desperate Pakistan is trying hard to find a new window of growth. And this new life line is coming in the form of cryptocurrency and a company that has links to US President Donald Trump. In February 2025, the government formed a Crypto Council, and on Tuesday, it upgraded this into a full regulatory body called the Pakistan Digital Asset Authority. This new authority will oversee and regulate digital assets like crypto and blockchain-based technologies. The government now aims to regulate and tax the sector, attract foreign investment, and legitimise the ecosystem through the newly formed Pakistan Digital Asset Authority (PDAA), led by Bilal Bin Saqib—a Forbes 30 Under 30 and MBE awardee. Pakistani-British entrepreneur Saqib's appointment signals Pakistan's push to align with global trends. With global crypto exchange platforms like Binance and Stacks showing interest, Pakistan is also allocating power for data centres to support crypto mining and AI. Saqib is tasked with creating a FATF-compliant crypto framework, launching Bitcoin mining, regulating it, and integrating blockchain into governance and finance. However, questions are being raised about policymaking and governmental control. Hussain Nadeem, a policy strategist and Pakistani AI expert, posed a few questions to Bilal Bin Saqib, who earlier headed the Pakistan Crypto Council and will now lead the PDAA. In a long post on X, he asked if there was a white paper on crypto advancement in Pakistan, how much of governmental/army control there would be and whether there were public discussions on policymaking in crypto post the tie-up with Trump's company. Nadeem's questions point toward larger policy hiccups. Industry experts, however, are confident of the prospects of crypto in Pakistan. 'The founders of WLFI recently visited Pakistan and expressed strong interest in supporting our crypto ecosystem. With their stablecoin valued at over $2 billion, WLFI is a significant global player. While the details of our collaboration will be announced soon, possibly at the upcoming Bitcoin Vegas Conference, their visit alone signals growing international confidence in Pakistan's crypto ambitions,' Ali Farid Khwaja, chairman at KTrade Securities and a domain expert, told ThePrint. Geopolitical concerns There are also geopolitical implications. An article from The Economist's May edition pointed out that many in India interpreted the US-Pakistan crypto deal as Pakistan's way to win Trump's favour, which perhaps even led to Trump declaring the ceasefire. In late April, Texas-based logistics firm Fr8Tech made headlines by pledging up to $20 million to buy $TRUMP, a cryptocurrency launched by Donald Trump. The firm, linked to World Liberty Finance, also promised to help Pakistan develop blockchain products and provide crypto industry advice—raising eyebrows globally. Meanwhile, the Trump family's deep ties to crypto via promotion, regulation, and investor perks like exclusive dinners are drawing the industry into US politics. While this gives crypto unprecedented visibility, critics in The Economist article, warn that its association with a partisan figure could ultimately harm its broader legitimacy. Nadeem too, in his criticism, compared the new crypto push to the Pakistan Army's involvement in Special Investment Facilitation Council, which is a federal body under the Pakistan government but one that is effectively run by the Pakistan military, including 36 active military officers. Established in 2023, under Prime Minister Shehbaz Sharif, SIFC aims to increase foreign investment and ease business but heavy military presence in the council has sparked concerns over civilian-military power balance. Calling it a 'great disservice to the country', Nadeem said 'Crypto is the new SIFC' 'The way this regime is approaching Crypto, it has unfortunately become a new con that has politics, not public good, as an end goal…. The regime has only ONE interest in Crypto: Access to the Trump White House, and sadly this hype is all about that, nothing more,' he wrote on X. Even Indian analysts are issuing words of caution. Pakistan's growing crypto adoption highlights a significant shift in the region's digital strategy—one India should closely monitor given the potential geopolitical and economic impacts, distinguished fellow at the Council on Strategic and Defence Research, C Raja Mohan, wrote in a recent column for The Indian Express. Khwaja, however, is hopeful for crypto's prospects in Pakistan and is not worried about governmental control overriding the positive impacts. Since the Crypto Council was announced just three months ago, Pakistan has attracted significant attention from some of the top names in the crypto industry. Binance, World Liberty Finance, crypto billionaire Justin Sun, and Stacks, a New York-based token with a $2 billion market cap, have all publicly announced engagements with Pakistan, he said. 'This surge of inbound interest from major global players is driving investment and prompting the government to actively facilitate regulations, aiming to position Pakistan as both a regional and global leader in crypto,' Khwaja said. He also added that, unlike before, when interest was often met with scepticism, the government is embracing these opportunities. 'It's not about trying to force development; companies are coming forward saying, 'We want to invest,' and Pakistan is responding. Similarly, in the US, President Trump has expressed a strong desire for the country to lead globally in this space, reflecting how quickly things are evolving worldwide,' he added. (Edited by Theres Sudeep)
Coin Geek
4 days ago
- Business
- Coin Geek
Pakistan sets up new authority for 'crypto' oversight
Getting your Trinity Audio player ready... Pakistan has unveiled a new regulatory body to oversee the digital asset sector as adoption in the South Asian nation skyrockets. Known as the Pakistan Digital Asset Authority (PDAA), the new watchdog has received the endorsement of the Finance Ministry. Minister Muhammad Aurangzeb recently said that PDAA will ensure Pakistan remains Financial Action Task Force (FATF) compliant and promote responsible digital asset use. 'Pakistan must regulate not just to catch up — but to lead,' the minister stated, as reported by national broadcaster PTV. '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.' The new authority will oversee all licensing of virtual asset service providers (VASPs), including exchanges, wallets, custodians, and brokerages. It will also have jurisdiction over decentralized finance (DeFi) platforms, tokenization firms, and stablecoin issuers. Beyond oversight, the authority will promote the development of 'blockchain-based solutions at scale.' Pakistan has embraced the technology for years, with former President Arif Alvi enlisting the assistance of leading experts, including the BSV Association, to draft a national blockchain strategy. The PDAA will also provide legal clarity to digital asset investors and channel Pakistan's excess electricity to block reward mining. Last month, the government revealed that it would begin using surplus power to mine digital assets at a time when demand for electricity from the national grid has dipped drastically. The authority will also support tokenizing government debt and national assets, PTV reports. With tokenization taking off globally, the Pakistani government set aside $3.5 billion in March to fund the sector. Experts predict that tokenized assets could unlock $18.9 trillion by 2033. Pakistan's deep dive into digital assets The PDAA is the latest initiative by the Pakistani government to promote digital assets and blockchain adoption. In March, it established the Pakistan Crypto Council (PCC), whose mandate is to promote the adoption of digital assets in the country and aid in formulating enabling laws. The Council's CEO, Bilal Bin Saqib, welcomed the new watchdog, which he says will augment the PCC's efforts in promoting the sector and is a stride toward 'strong and smart regulations.' 'This is not just about crypto — it's about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation,' he stated. The two agencies—both chaired by Minister Aurangzeb—have overlapping duties, such as promoting adoption. However, the Council serves more as an advisory body that shapes policy and industry collaboration, while the newly formed PDAA will have direct legal enforcement powers. Saqib, who chairs the Council, is focused on making Pakistan a Web3 hub, even with the formation of the new watchdog. 'For the first time, we are not standing behind the world, but we are establishing our own trend in the digital currency landscape. Global tech leaders and companies are now looking toward Pakistan to explore its crypto potential,' he told local outlet Dawn. With its focus on boosting Web3 and new laws on digital assets, Pakistan is ensuring 'that global-level companies can now be built in Pakistan, not just in the U.S. or Europe.' Pakistan dedicates 2,000 MW to 'crypto' mining, AI In yet another stride towards promoting digital assets in the country, the Pakistani government has allocated 2,000 megawatts (MW) of electricity to block reward mining and artificial intelligence (AI) data centers. The initiative is led by the PCC and will mainly depend on excess power. The Pakistani economy has faltered in recent years and almost defaulted in 2023. It has been especially brutal to small and medium enterprises (SMEs), which employ the bulk of the country's workforce, leading to lower electricity demand and a switch to cheaper alternatives like solar energy. Besides the surplus power, the government intends to repurpose some of the country's coal-based power stations, which have been operating below capacity for years. Currently, Pakistan's contribution to the global BTC hash rate is negligible, with regional peers like Thailand, India, and Iran playing a bigger role. However, if all 2,000 MW goes to block reward mining with the latest ASIC miners, it could contribute over 60 exahashes per second (EH/s), making it one of the top five mining hubs. Watch: It's time for regulation to enable blockchain growth title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Business Recorder
6 days ago
- Business
- Business Recorder
Blockchain and Cryptocurrency: Bilal made special assistant to PM
ISLAMABAD: In a bold move to ride the crypto wave, Prime Minister Shehbaz Sharif on Monday named UK-based entrepreneur Bilal bin Saqib as his special assistant on Blockchain and Cryptocurrency – a bold step toward putting Pakistan on the crypto map. The Prime Minister's Office issued a notification confirming that Saqib, a UK-based entrepreneur with experience in technology and philanthropy, has been appointed with the status of minister of state. Saqib will lead efforts to formulate a national strategy for digital assets, including drafting cryptocurrency regulations, establishing Bitcoin mining operations, and integrating Blockchain technology into sectors such as land records and public finance. He currently serves as Chief Executive Officer of the Pakistan Crypto Council and was recently appointed Chief Advisor to Finance Minister Muhammad Aurangzeb. His new role is expected to accelerate Pakistan's entry into the digital asset space. Field Marshal Asim Munir meets Pakistan Crypto Council CEO Bilal Bin Saqib The appointment follows a major policy announcement on Sunday, in which the government allocated 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centres. In parallel, the Finance Ministry launched the Pakistan Digital Assets Authority (PDAA), a new regulatory body tasked with creating a legal framework for cryptocurrencies, supervising asset tokenization, and formalizing Pakistan's estimated $300 billion informal crypto market. Officials said the PDAA would play a central role in developing Pakistan's Fintech sector by attracting investment, utilizing surplus energy, and promoting innovation among the country's youth, who make up nearly 70% of the population. Pakistan already has one of the highest cryptocurrency adoption rates in the world, with over 50 million users, and Saqib's appointment could bring structure and legitimacy to the rapidly growing sector. An alumnus of the London School of Economics, Saqib gained prominence during the COVID-19 pandemic through his 'One Million Meals' campaign in the UK, which delivered over 100,000 meals to National Health Service workers and vulnerable groups. The initiative earned him an MBE from King Charles III and commendation from Queen Elizabeth II and the Mayor of London. In Pakistan, he co-founded Tayaba, a social enterprise that introduced the H2O Wheel, a tool designed to ease water collection in rural communities. Saqib is expected to play a key role in advancing Pakistan's digital asset agenda, as the government moves to position itself as a player in the global crypto economy. Copyright Business Recorder, 2025
Express Tribune
6 days ago
- Business
- Express Tribune
Bilal Bin Saqib appointed as SAPM on blockchain, crypto
Listen to article Prime Minister Shehbaz Sharif raised the number of his cabinet members to 55 on Monday by appointing Bilal Bin Saqib as his special assistant on blockchain and cryptocurrency, with the status of state minister. The appointment comes just weeks after Saqib was named Chief Advisor to the Finance Minister for the Pakistan Crypto Council (PCC), where he also serves as the Chief Executive Officer (CEO). According to the press release, Saqib's responsibilities will include developing a comprehensive, FATF-compliant regulatory framework for digital assets, launching Bitcoin mining initiatives, and overseeing blockchain integration in governance, finance, and land records. The recent development comes a day after the federal govenrment announced a 2,000 megawatt (MW) electricity allocation for the first phase of a national initiative to support Bitcoin mining and Artificial Intelligence (AI) data centres. Read more: Govt allocates 2,000MW for AI data centres, bitcoin mining In a key development aligned with these efforts, the Ministry of Finance also unveiled a comprehensive strategy to regulate digital assets and accelerate the growth of Pakistan's virtual asset economy. As part of this initiative, the government has endorsed the creation of a dedicated body — the Pakistan Digital Assets Authority (PDAA) — tasked with overseeing blockchain-based financial infrastructure, according to an official statement released by the Ministry. The PDAA is expected to regulate a $300 billion informal crypto market, facilitate the tokenisation of national assets and government debt, provide legal clarity to global and local investors, and enable monetisation of Pakistan's surplus electricity through regulated Bitcoin mining. Additionally, the authority aims to promote best practices for innovation, ensure economic inclusion, and empower youth and startups to build blockchain-based solutions at scale. The Pakistan Crypto Council continues to operate as a national force for crypto policy, innovation, youth empowerment, and international engagement in crypto and blockchain. Pakistan is home to over 50 million crypto users, with an annual trading volume exceeding $300 billion. The country consistently ranks in the top 5 globally for crypto adoption, reflecting its strong grassroots engagement with digital assets. Out of a population of 240 million, 70% of Pakistanis are under the age of 30. Pakistan boasts a highly favorable demographic for widespread crypto adoption, making it one of the most promising emerging markets for blockchain and digital finance innovation. Pakistan is also the third-largest freelancer market in the world, showcasing its dynamic and entrepreneurial digital workforce. Each year, over 50,000 IT graduates enter the workforce, adding to the country's growing pool of tech-savvy youth ready to drive innovation and participate in the global digital economy. Who is Bilal Bin Saqib? A London-based entrepreneur, Bilal Bin Saqib has been at the forefront of digital innovation and social impact. Recognized by King Charles III, the late Queen Elizabeth II, and the Mayor of London, Saqib's work spans across blockchain technology, crypto investments, and social entrepreneurship. In 2023, he was awarded an MBE (Member of the British Empire) for his humanitarian efforts during the COVID-19 pandemic, during which he led the One Million Meals initiative, delivering over 100,000 meals to NHS staff and vulnerable populations across the UK. His academic credentials include a Master's in Social Innovation and Entrepreneurship from the London School of Economics (LSE). He also received the 1632nd Points of Light Award, a recognition granted by the British Prime Minister to individuals making outstanding contributions to their communities. Beyond his work in fintech, Saqib co-founded Tayaba, a social enterprise focused on Pakistan's water crisis, introducing the H2O Wheel, an innovative water transportation device designed to ease the burden on rural communities.
