New Delhi: Pakistan’s Cryptocurrency Push
Pakistan is making significant strides into the world of cryptocurrencies, and this shift isn’t just about the economy—it seems deeply political, intertwining with the country’s military and intelligence operations.
Shortly after his rise to become the most powerful military leader, Chief of Army Staff and Field Marshal Asim Munir joined Prime Minister Shehbaz Sharif. Notably, ISI Director-General Asim Malik participated in an important meeting with Richard Teng, CEO of Binance, in Islamabad.
Alongside them was Bilal bin Saqib, chairman of the newly formed Pakistan Virtual Assets Regulatory Authority (PVARA), who discussed the National Digital Asset Framework for Pakistan.
The Ministry of Finance indicated that this meeting, attended by Binance executives, aimed to pave the way for a “secure, transparent, and innovation-driven digital asset ecosystem” within the country.
The Treasury Department’s statements coincide with rising concerns among local banks about the implications of cryptocurrency adoption in Pakistan. As reported by dawn, during a consultative gathering organized by the Ministry of Finance and PVARA, various banks expressed apprehensions related to money laundering and regulatory risks. They referenced international precedents where gaps in crypto regulation resulted in hefty fines.
Yet, the government appears resolute in its decision. They’ve instituted a “time-limited amnesty” for crypto traders with annual transactions exceeding $250 billion, which allows them to shift assets to regulated platforms without facing penalties. This was brought up during the meeting, where a Binance representative noted that Pakistani users hold around $5 billion on Binance alone and suggested that tokenized assets could count towards Pakistan’s “liquid money supply.”
This “liquid money supply” consists of assets readily usable for transactions. The discussion participants were informed that Binance is set to offer real-time reporting, enabling banks to lend against digitally verified collateral—this could potentially attract billions in new funds, including remittances that might reach $38 billion annually from overseas workers.
However, banks remained skeptical about whether achieving a clear view and traceability would be feasible.
Pakistan’s Virtual Currency Landscape
Although financial institutions in Pakistan currently cannot accept virtual currencies, these assets are recognized as legal tender. Earlier this year, the government established a crypto council, signaling steps toward regulation as a means to boost the economy, with a legal framework in development.
The council evolved into the Pakistan Digital Assets Authority, responsible for supervising and regulating digital assets, including cryptocurrencies. Additionally, in April, Pakistan entered into an agreement with World Liberty Financial (WLF), a firm connected to former President Trump’s family, to assist in building blockchain infrastructure and navigating the cryptocurrency landscape. Yet, the specific terms of the collaboration remain unclear.
In July, the Virtual Assets Ordinance 2025 was enacted, setting up a regulatory environment via PVARA. Then, in September, the State Bank of Pakistan, which had previously banned cryptocurrencies, indicated it would modify its stance and begin the formal legalization process.
This urgency to regulate cryptocurrencies raises questions. For Pakistan, these digital assets might offer solutions to economic challenges, such as a sluggish banking system and foreign exchange shortages. Tokenized assets could facilitate new financial inflows.
From Binance’s perspective, Pakistan represents a significant opportunity, boasting 40 million users on the platform—a potentially lucrative market. Regulating cryptocurrencies could solidify Binance’s position, especially amid unresolved legal issues in the U.S.
Interestingly, the dynamics between Binance, Trump, and Pakistan create a complex narrative.
The Binance-Trump-Pakistan Nexus
The backdrop of Pakistan’s cryptocurrency drive features the controversy surrounding Binance and its founder, Zhao Changpeng (CZ), who holds a substantial stake in the firm.
Zhao faced legal troubles in the U.S. but received a pardon from Trump shortly before engaging more deeply with Pakistan. In early 2025, Islamabad appointed him as a strategic advisor to their Crypto Council, influencing the formation of several new crypto regulatory entities.
This relationship also touches on Trump’s family’s venture into crypto, as their company, WLF, introduced a USD1 stablecoin with assistance reportedly from Binance. Following this, Pakistan signed a “letter of intent” with WLF for collaboration on blockchain and stablecoin projects, with Bilal bin Saqib serving as an advisor to both WLF and the crypto council.
